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☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
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ABO: Accumulated benefit obligation.
ALCO: Asset/Liability Management Committee.
ALLL: Allowance for loan and lease losses.
A/LM: Asset/liability management.
AML: Anti-money laundering.
AOCI: Accumulated other comprehensive income (loss).
APBO: Accumulated postretirement benefit obligation.
ARRC: Alternative Reference Rates Committee.
ASC: Accounting Standards Codification.
ASU: Accounting Standards Update.
ATMs: Automated teller machines.
Austin: Austin Capital Management, Ltd.
BSA: Bank Secrecy Act.
BHCA: Bank Holding Company Act of 1956, as amended.
BHCs: Bank holding companies.
Board: KeyCorp Board of Directors.
CAPM: Capital Asset Pricing Model.
CCAR: Comprehensive Capital Analysis and Review.
Cain Brothers: Cain Brothers & Company, LLC.
CECL: Current Expected Credit Losses.
CFPB: Consumer Financial Protection Bureau, also known as the Bureau of Consumer Financial Protection.
CFTC: Commodities Futures Trading Commission.
CMBS: Commercial mortgage-backed securities.
CMO: Collateralized mortgage obligation.
Common Shares: KeyCorp common shares, $1 par value.
CVA: Credit Valuation Adjustment.
DCF: Discounted cash flow.
DIF: Deposit Insurance Fund of the FDIC.
Dodd-Frank Act: Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010.
EAD: Exposure at default.
EBITDA: Earnings before interest, taxes, depreciation, and
amortization.
EPS: Earnings per share.
ERISA: Employee Retirement Income Security Act of 1974.
ERM: Enterprise risk management.
EVE: Economic value of equity.
FASB: Financial Accounting Standards Board.
FDIA: Federal Deposit Insurance Act, as amended.
FDIC: Federal Deposit Insurance Corporation.
Federal Reserve: Board of Governors of the Federal Reserve
System.
FHLB: Federal Home Loan Bank of Cincinnati.
FHLMC: Federal Home Loan Mortgage Corporation.
FICO: Fair Isaac Corporation.
FINRA: Financial Industry Regulatory Authority.
First Niagara: First Niagara Financial Group, Inc.
FNMA: Federal National Mortgage Association.
FSOC: Financial Stability Oversight Council.
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FVA: Fair value of employee benefit plan assets.
GAAP: U.S. generally accepted accounting principles.
GNMA: Government National Mortgage Association.
HelloWallet: HelloWallet, LLC.
HTC: Historic tax credit.
IRS: Internal Revenue Service.
ISDA: International Swaps and Derivatives Association.
KBCM: KeyBanc Capital Markets, Inc.
KCC: Key Capital Corporation.
KCDC: Key Community Development Corporation.
KEF: Key Equipment Finance.
KIBS: Key Insurance & Benefits Services, Inc.
LCR: Liquidity coverage ratio.
LGD: Loss given default.
LIBOR: London Interbank Offered Rate.
LIHTC: Low-income housing tax credit.
LTV: Loan-to-value.
Moody’s: Moody’s Investor Services, Inc.
MRM: Market Risk Management group.
MRC: Market Risk Committee.
N/A: Not applicable.
Nasdaq: The Nasdaq Stock Market LLC.
NAV: Net asset value.
NFA: National Futures Association.
N/M: Not meaningful.
NMTC: New market tax credit.
NOW: Negotiable Order of Withdrawal.
NPR: Notice of proposed rulemaking.
NYSE: New York Stock Exchange.
OCC: Office of the Comptroller of the Currency.
OCI: Other comprehensive income (loss).
OREO: Other real estate owned.
PBO: Projected benefit obligation.
PCCR: Purchased credit card relationship.
PCD: Purchased credit deteriorated.
PD: Probability of default.
PPP: Paycheck Protection Program.
S&P: Standard and Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc.
SEC: U.S. Securities & Exchange Commission.
SIFIs: Systemically important financial institutions, including large, interconnected BHCs and nonbank financial companies designated by FSOC for supervision by the Federal Reserve.
SOFR: Secured Overnight Financing Rate.
TCJ Act: Tax Cuts and Jobs Act.
TDR: Troubled debt restructuring.
TE: Taxable-equivalent.
U.S. Treasury: United States Department of the Treasury.
VaR: Value at risk.
VEBA: Voluntary Employee Beneficiary Association.
VIE: Variable interest entity.
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Item
Number
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Page
Number
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||||||||||
| PART I | |||||||||||
| 1 | |||||||||||
| 1A | |||||||||||
| 1B | |||||||||||
| 2 | |||||||||||
| 3 | |||||||||||
| 4 | |||||||||||
| PART II | |||||||||||
| 5 | |||||||||||
| 6 | |||||||||||
| 7 | |||||||||||
| 7A | |||||||||||
| 8 | |||||||||||
| 9 | |||||||||||
| 9A | |||||||||||
| 9B | |||||||||||
| PART III | |||||||||||
| 10 | |||||||||||
| 11 | |||||||||||
| 12 | |||||||||||
| 13 | |||||||||||
| 14 | |||||||||||
| PART IV | |||||||||||
| 15 | |||||||||||
| 16 | |||||||||||
| Description of Financial Data | Page Number | ||||
| Selected Financial Data | 41 | ||||
| Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates from Continuing Operations | 48 | ||||
| Components of Net Interest Income Changes from Continuing Operations | 50 | ||||
| Composition of Loans | 60 | ||||
| Remaining Maturities and Sensitivity of Certain Loans to Changes in Interest Rates | 65 | ||||
| Securities Available for Sale | 66 | ||||
| Held-to-Maturity Securities | 67 | ||||
| Maturity Distribution of Time Deposits of $100,000 or More | 68 | ||||
| Allocation of the Allowance for Loan and Lease Losses | 83 | ||||
| Summary of Loan and Lease Loss Experience from Continuing Operations | 84 | ||||
| Summary of Nonperforming Assets and Past Due Loans from Continuing Operations | 85 | ||||
| Summary of Changes in Nonperforming Loans from Continuing Operations | 85 | ||||
| Short-Term Borrowings | 170 | ||||
| Region | Employee Count | ||||
| New England Region | 417 | ||||
| East Region | 2,479 | ||||
| Upstate New York Region | 2,773 | ||||
| Northeast Ohio/Western Pennsylvania Region | 6,128 | ||||
| Great Lakes Region | 1,287 | ||||
| Rocky Mountain Region | 1,182 | ||||
| Pacific Region | 1,906 | ||||
| Corporate Offices (Out of Footprint) | 1,613 | ||||
| Ratios (including stress capital buffer) | Regulatory Minimum Requirement |
Stress Capital Buffer
(b)
|
Regulatory Minimum With Stress Capital Buffer |
KeyCorp December 31, 2020
(c)
|
||||||||||
| Common Equity Tier 1 | 4.50 | % | 2.50 | % | 7.00 | % | 9.73 | % | ||||||
| Tier 1 Capital | 6.00 | 2.50 | 8.50 | 11.11 | ||||||||||
| Total Capital | 8.00 | 2.50 | 10.50 | 13.40 | ||||||||||
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Leverage
(a)
|
4.00 | N/A | 4.00 | 8.94 | ||||||||||
| Prompt Corrective Action | Capital Category | |||||||||||||
| Ratio |
Well Capitalized
(a)
|
Adequately Capitalized | ||||||||||||
| Common Equity Tier 1 Risk-Based | 6.5 | % | 4.5 | % | ||||||||||
| Tier 1 Risk-Based | 8.0 | 6.0 | ||||||||||||
| Total Risk-Based | 10.0 | 8.0 | ||||||||||||
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Tier 1 Leverage
(b)
|
5.0 | 4.0 | ||||||||||||
| Page(s) | |||||
| Discussion of our common shares, shareholder information, and repurchase activities in the section captioned “Capital — Common Shares outstanding” | 68 | ||||
| Discussion of dividends in the section captioned “Capital — Dividends” | 68 | ||||
| Calendar month |
Total number of shares
repurchased
(a)
|
Average price paid
per share
|
Total number of shares purchased as part of publicly announced plans or programs |
Maximum number of shares that may yet be purchased as part of publicly announced plans or programs
(b)
|
||||||||||
| October 1 - 31 | 3,704 | 13.07 | 3,704 | 27,611,169 | ||||||||||
| November 1 - 30 | 1,546 | $ | 13.23 | 1,546 | 23,180,629 | |||||||||
| December 1 - 31 | 1,086,634 | 15.97 | 1,086,634 | 20,781,479 | ||||||||||
| Total | 1,091,884 | $ | 15.95 | 1,091,884 | ||||||||||
| dollars in millions, except per share amounts | 2020 | 2019 | 2018 | 2017 | 2016 |
Compound
Annual Rate of Change (2016-2020) |
||||||||||||||
| YEAR ENDED DECEMBER 31, | ||||||||||||||||||||
| Interest income | $ | 4,685 | 5,235 | 4,878 | 4,390 | 3,319 | 7.1 | % | ||||||||||||
| Interest expense | 651 | 1,326 | 969 | 613 | 400 | 10.2 | ||||||||||||||
| Net interest income | 4,034 | 3,909 | 3,909 | 3,777 | 2,919 | 6.7 | ||||||||||||||
| Provision for credit losses | 1,021 | 445 | 246 | 229 | 266 | 30.9 | ||||||||||||||
| Noninterest income | 2,652 | 2,459 | 2,515 | 2,478 | 2,071 | 5.1 | ||||||||||||||
| Noninterest expense | 4,109 | 3,901 | 3,975 | 4,098 | 3,756 | 1.8 | ||||||||||||||
| Income (loss) from continuing operations before income taxes | 1,556 | 2,022 | 2,203 | 1,928 | 968 | 10.0 | ||||||||||||||
| Income (loss) from continuing operations attributable to Key | 1,329 | 1,708 | 1,859 | 1,289 | 790 | 11.0 | ||||||||||||||
| Income (loss) from discontinued operations, net of taxes | 14 | 9 | 7 | 7 | 1 | N/A | ||||||||||||||
| Net income (loss) attributable to Key | 1,343 | 1,717 | 1,866 | 1,296 | 791 | 11.2 | ||||||||||||||
| Income (loss) from continuing operations attributable to Key common shareholders | 1,223 | 1,611 | 1,793 | 1,219 | 753 | 10.2 | ||||||||||||||
| Income (loss) from discontinued operations, net of taxes | 14 | 9 | 7 | 7 | 1 | N/A | ||||||||||||||
| Net income (loss) attributable to Key common shareholders | 1,237 | 1,620 | 1,800 | 1,226 | 754 | 10.4 | ||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||
| Income (loss) from continuing operations attributable to Key common shareholders | $ | 1.26 | 1.62 | 1.72 | 1.13 | 0.81 | 9.2 | |||||||||||||
| Income (loss) from discontinued operations, net of taxes | .01 | 0.01 | 0.01 | 0.01 | 0 | N/A | ||||||||||||||
|
Net income (loss) attributable to Key common shareholders
(a)
|
1.28 | 1.63 | 1.73 | 1.14 | 0.81 | 9.6 | ||||||||||||||
|
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
|
1.26 | 1.61 | 1.7 | 1.12 | 0.80 | 9.5 | ||||||||||||||
| Income (loss) from discontinued operations, net of taxes — assuming dilution | .01 | 0.01 | 0.01 | 0.01 | 0 | N/A | ||||||||||||||
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Net income (loss) attributable to Key common shareholders — assuming dilution
(a)
|
1.27 | 1.62 | 1.71 | 1.13 | 0.80 | 9.7 | ||||||||||||||
| Cash dividends paid | .74 | 0.71 | 0.565 | 0.38 | 0.33 | 17.5 | ||||||||||||||
| Book value at year end | 16.53 | 15.54 | 13.9 | 13.09 | 12.58 | 5.6 | ||||||||||||||
| Tangible book value at year end | 13.61 | 12.56 | 11.14 | 10.35 | 9.99 | 6.4 | ||||||||||||||
| Market price at year end | 16.41 | 20.24 | 14.78 | 20.17 | 18.27 | (2.1) | ||||||||||||||
| Dividend payout ratio | 57.8 | % | 43.6 | % | 32.7 | % | 33.3 | % | 40.7 | % | N/A | |||||||||
| Weighted-average common shares outstanding (000) | 967,783 | 992,091 | 1,040,890 | 1,072,078 | 927,816 | 301.5 | ||||||||||||||
|
Weighted-average common shares and potential common shares outstanding (000)
(b)
|
974,807 | 1,002,254 | 1,054,682 | 1,088,593 | 938,536 | 301.1 | ||||||||||||||
| AT DECEMBER 31, | ||||||||||||||||||||
| Loans | $ | 101,185 | 94,646 | 89,552 | 86,405 | 86,038 | 3.3 | % | ||||||||||||
| Earning assets | 155,469 | 130,807 | 125,803 | 123,490 | 121,966 | 5.0 | ||||||||||||||
| Total assets | 170,336 | 144,988 | 139,613 | 137,698 | 136,453 | 4.5 | ||||||||||||||
| Deposits | 135,282 | 111,870 | 107,309 | 105,235 | 104,087 | 5.4 | ||||||||||||||
| Long-term debt | 13,709 | 12,448 | 13,732 | 14,333 | 12,384 | 2.1 | ||||||||||||||
| Key common shareholders’ equity | 16,081 | 15,138 | 14,145 | 13,998 | 13,575 | 3.4 | ||||||||||||||
| Key shareholders’ equity | 17,981 | 17,038 | 15,595 | 15,023 | 15,240 | 3.4 | ||||||||||||||
| PERFORMANCE RATIOS — FROM CONTINUING OPERATIONS | ||||||||||||||||||||
| Return on average total assets | .82 | % | 1.19 | % | 1.36 | % | 0.96 | % | 0.70 | % | N/A | |||||||||
| Return on average common equity | 7.77 | 10.83 | 12.88 | 8.65 | 6.26 | N/A | ||||||||||||||
|
Return on average tangible common equity
(c)
|
9.51 | 13.46 | 16.22 | 10.84 | 7.39 | N/A | ||||||||||||||
| Net interest margin (TE) | 2.77 | 3.04 | 3.17 | 3.17 | 2.92 | N/A | ||||||||||||||
|
Cash efficiency ratio
(c)
|
60.2 | 59.6 | 60.0 | 63.5 | 73.7 | N/A | ||||||||||||||
| PERFORMANCE RATIOS — FROM CONSOLIDATED OPERATIONS | ||||||||||||||||||||
| Return on average total assets | .82 | % | 1.19 | % | 1.35 | % | 0.96 | % | 0.69 | % | N/A | |||||||||
| Return on average common equity | 7.86 | 10.89 | 12.93 | 8.7 | 6.27 | N/A | ||||||||||||||
|
Return on average tangible common equity
(c)
|
9.62 | 13.53 | 16.28 | 10.9 | 7.4 | N/A | ||||||||||||||
| Net interest margin (TE) | 2.76 | 3.03 | 3.15 | 3.15 | 2.91 | N/A | ||||||||||||||
|
Loan to deposit
(d)
|
76.5 | 86.6 | 85.6 | 84.4 | 85.2 | N/A | ||||||||||||||
| CAPITAL RATIOS AT DECEMBER 31, | ||||||||||||||||||||
| Key shareholders’ equity to assets | 10.56 | % | 11.75 | % | 11.17 | % | 10.91 | % | 11.17 | % | N/A | |||||||||
| Key common shareholders’ equity to assets | 9.47 | 10.47 | 10.15 | 10.17 | 9.95 | N/A | ||||||||||||||
|
Tangible common equity to tangible assets
(c)
|
7.93 | 8.64 | 8.3 | 8.23 | 8.09 | N/A | ||||||||||||||
| Common Equity Tier 1 | 9.73 | 9.44 | 9.93 | 10.16 | 9.54 | N/A | ||||||||||||||
| Tier 1 risk-based capital | 11.11 | 10.86 | 11.08 | 11.01 | 10.89 | N/A | ||||||||||||||
| Total risk-based capital | 13.40 | 12.79 | 12.89 | 12.92 | 12.85 | N/A | ||||||||||||||
| Leverage | 8.94 | 9.88 | 9.89 | 9.73 | 9.9 | N/A | ||||||||||||||
| TRUST ASSETS | ||||||||||||||||||||
| Assets under management | $ | 44,140 | 40,833 | 36,775 | 39,588 | 36,592 | 1,545.5 | % | ||||||||||||
| OTHER DATA | ||||||||||||||||||||
| Average full-time-equivalent employees | 16,826 | 17,045 | 18,180 | 18,415 | 15,700 | 1.4 | % | |||||||||||||
| Branches | 1,073 | 1,098 | 1,159 | 1,197 | 1,217 | (2.5) | ||||||||||||||
| Page Number | |||||
| Year ended December 31, | 2020 | 2019 | |||||||||||||||||||||
| dollars in millions |
Average
Balance
|
Interest
(a)
|
Yield/
Rate
(a)
|
Average
Balance
|
Interest
(a)
|
Yield/
Rate
(a)
|
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| ASSETS | |||||||||||||||||||||||
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Loans
(b), (c)
|
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Commercial and industrial
(d)
|
$ | 55,145 | $ | 1,977 | 3.59 | % | $ | 47,482 | $ | 2,144 | 4.51 | % | |||||||||||
| Real estate — commercial mortgage | 13,279 | 521 | 3.92 | 13,641 | 676 | 4.95 | |||||||||||||||||
| Real estate — construction | 1,843 | 74 | 3.99 | 1,485 | 78 | 5.24 | |||||||||||||||||
| Commercial lease financing | 4,497 | 139 | 3.09 | 4,488 | 163 | 3.63 | |||||||||||||||||
| Total commercial loans | 74,764 | 2,711 | 3.63 | 67,096 | 3,061 | 4.56 | |||||||||||||||||
| Real estate — residential mortgage | 8,094 | 284 | 3.50 | 6,095 | 241 | 3.95 | |||||||||||||||||
| Home equity loans | 9,772 | 392 | 4.01 | 10,634 | 526 | 4.95 | |||||||||||||||||
| Consumer direct loans | 4,213 | 221 | 5.26 | 2,475 | 176 | 7.11 | |||||||||||||||||
| Credit cards | 1,001 | 107 | 10.65 | 1,100 | 127 | 11.51 | |||||||||||||||||
| Consumer indirect loans | 4,845 | 180 | 3.72 | 4,111 | 168 | 4.09 | |||||||||||||||||
| Total consumer loans | 27,925 | 1,184 | 4.24 | 24,415 | 1,238 | 5.07 | |||||||||||||||||
| Total loans | 102,689 | 3,895 | 3.79 | 91,511 | 4,299 | 4.70 | |||||||||||||||||
| Loans held for sale | 1,972 | 69 | 3.49 | 1,411 | 63 | 4.48 | |||||||||||||||||
|
Securities available for sale
(b), (e)
|
23,742 | 484 | 2.10 | 21,362 | 537 | 2.51 | |||||||||||||||||
|
Held-to-maturity securities
(b)
|
8,938 | 222 | 2.49 | 10,841 | 262 | 2.41 | |||||||||||||||||
| Trading account assets | 814 | 20 | 2.47 | 1,017 | 32 | 3.18 | |||||||||||||||||
| Short-term investments | 9,096 | 18 | .20 | 2,876 | 61 | 2.11 | |||||||||||||||||
|
Other investments
(e)
|
635 | 6 | .87 | 630 | 13 | 2.09 | |||||||||||||||||
| Total earning assets | 147,886 | 4,714 | 3.20 | 129,648 | 5,267 | 4.06 | |||||||||||||||||
| Allowance for loan and lease losses | (1,481) | (880) | |||||||||||||||||||||
| Accrued income and other assets | 15,650 | 14,411 | |||||||||||||||||||||
| Discontinued assets | 775 | 984 | |||||||||||||||||||||
| Total assets | $ | 162,830 | $ | 144,163 | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| NOW and money market deposit accounts | $ | 75,733 | 206 | .27 | $ | 63,731 | 566 | .89 | |||||||||||||||
| Savings deposits | 5,252 | 2 | .04 | 4,740 | 4 | .09 | |||||||||||||||||
|
Certificates of deposit ($100,000 or more)
(f)
|
4,520 | 83 | 1.83 | 7,757 | 180 | 2.32 | |||||||||||||||||
| Other time deposits | 4,041 | 56 | 1.38 | 5,426 | 103 | 1.90 | |||||||||||||||||
| Deposits in foreign office | — | — | — | — | — | — | |||||||||||||||||
| Total interest-bearing deposits | 89,546 | 347 | .39 | 81,654 | 853 | 1.04 | |||||||||||||||||
| Federal funds purchased and securities sold under repurchase agreements | 670 | 6 | .88 | 264 | 2 | .66 | |||||||||||||||||
| Bank notes and other short-term borrowings | 1,452 | 12 | .85 | 730 | 17 | 2.31 | |||||||||||||||||
|
Long-term debt
(f), (g)
|
12,578 | 286 | 2.36 | 13,062 | 454 | 3.52 | |||||||||||||||||
| Total interest-bearing liabilities | 104,246 | 651 | .63 | 95,710 | 1,326 | 1.39 | |||||||||||||||||
| Noninterest-bearing deposits | 37,740 | 28,376 | |||||||||||||||||||||
| Accrued expense and other liabilities | 2,433 | 2,456 | |||||||||||||||||||||
|
Discontinued liabilities
(g)
|
775 | 984 | |||||||||||||||||||||
| Total liabilities | 145,194 | 127,526 | |||||||||||||||||||||
| EQUITY | |||||||||||||||||||||||
| Key shareholders’ equity | 17,636 | 16,636 | |||||||||||||||||||||
| Noncontrolling interests | — | 1 | |||||||||||||||||||||
| Total equity | 17,636 | 16,637 | |||||||||||||||||||||
| Total liabilities and equity | $ | 162,830 | $ | 144,163 | |||||||||||||||||||
| Interest rate spread (TE) | 2.57 | % | 2.67 | % | |||||||||||||||||||
| Net interest income (TE) and net interest margin (TE) | 4,063 | 2.77 | % | 3,941 | 3.04 | % | |||||||||||||||||
|
Less: TE adjustment
(b)
|
29 | 32 | |||||||||||||||||||||
| Net interest income, GAAP basis | $ | 4,034 | $ | 3,909 | |||||||||||||||||||
| 2018 | 2017 | 2016 |
Compound Annual Rate of
Change (2016-2020) |
||||||||||||||||||||||||||||||||||||||
|
Average
Balance |
Interest
(a)
|
Yield/
Rate (a) |
Average
Balance
|
Interest
(a)
|
Yield/
Rate
(a)
|
Average
Balance
|
Interest
(a)
|
Yield/
Rate
(a)
|
Average
Balance |
Interest | |||||||||||||||||||||||||||||||
| $ | 44,418 | $ | 1,926 | 4.34 | % | $ | 40,848 | $ | 1,613 | 3.95 | % | $ | 35,276 | $ | 1,215 | 3.45 | % | 9.3 | % | 10.2 | % | ||||||||||||||||||||
| 14,267 | 698 | 4.90 | 14,878 | 687 | 4.62 | 11,063 | 451 | 4.07 | 3.7 | 2.9 | |||||||||||||||||||||||||||||||
| 1,816 | 90 | 4.97 | 2,143 | 103 | 4.78 | 1,460 | 76 | 5.22 | 4.8 | (.5) | |||||||||||||||||||||||||||||||
| 4,534 | 168 | 3.70 | 4,677 | 185 | 3.96 | 4,261 | 161 | 3.78 | 1.1 | (2.9) | |||||||||||||||||||||||||||||||
| 65,035 | 2,882 | 4.43 | 62,546 | 2,588 | 4.14 | 52,060 | 1,903 | 3.66 | 7.5 | 7.3 | |||||||||||||||||||||||||||||||
| 5,473 | 217 | 3.97 | 5,499 | 214 | 3.89 | 3,632 | 148 | 4.09 | 17.4 | 13.9 | |||||||||||||||||||||||||||||||
| 11,530 | 547 | 4.74 | 12,380 | 536 | 4.33 | 11,286 | 456 | 4.04 | (2.8) | (3.0) | |||||||||||||||||||||||||||||||
| 1,782 | 137 | 7.66 | 1,765 | 126 | 7.12 | 1,661 | 113 | 6.79 | 20.5 | 14.4 | |||||||||||||||||||||||||||||||
| 1,092 | 125 | 11.40 | 1,055 | 118 | 11.15 | 916 | 98 | 10.73 | 1.8 | 1.8 | |||||||||||||||||||||||||||||||
| 3,426 | 146 | 4.27 | 3,120 | 148 | 4.75 | 1,593 | 89 | 5.58 | 24.9 | 15.1 | |||||||||||||||||||||||||||||||
| 23,303 | 1,172 | 5.03 | 23,819 | 1,142 | 4.79 | 19,088 | 904 | 4.74 | 7.9 | 5.5 | |||||||||||||||||||||||||||||||
| 88,338 | 4,054 | 4.59 | 86,365 | 3,730 | 4.32 | 71,148 | 2,807 | 3.95 | 7.6 | 6.8 | |||||||||||||||||||||||||||||||
| 1,501 | 66 | 4.43 | 1,325 | 52 | 3.96 | 979 | 34 | 3.51 | 15.0 | 15.2 | |||||||||||||||||||||||||||||||
| 17,898 | 409 | 2.20 | 18,548 | 369 | 1.96 | 16,661 | 329 | 1.98 | 7.3 | 8.0 | |||||||||||||||||||||||||||||||
| 12,003 | 284 | 2.37 | 10,515 | 222 | 2.11 | 6,275 | 122 | 1.94 | 7.3 | 12.7 | |||||||||||||||||||||||||||||||
| 893 | 29 | 3.25 | 949 | 27 | 2.81 | 884 | 23 | 2.59 | (1.6) | (2.8) | |||||||||||||||||||||||||||||||
| 2,450 | 46 | 1.86 | 2,363 | 26 | 1.11 | 4,656 | 22 | .47 | 14.3 | (3.9) | |||||||||||||||||||||||||||||||
| 697 | 21 | 3.04 | 712 | 17 | 2.35 | 679 | 16 | 2.37 | (1.3) | (17.8) | |||||||||||||||||||||||||||||||
| 123,780 | 4,909 | 3.94 | 120,777 | 4,443 | 3.67 | 101,282 | 3,353 | 3.31 | 7.9 | 7.1 | |||||||||||||||||||||||||||||||
| (878) | (865) | (835) | 12.1 | ||||||||||||||||||||||||||||||||||||||
| 13,910 | 13,807 | 12,090 | 5.3 | ||||||||||||||||||||||||||||||||||||||
| 1,212 | 1,448 | 1,707 | (14.6) | ||||||||||||||||||||||||||||||||||||||
| $ | 138,024 | $ | 135,167 | $ | 114,244 | 7.3 | % | ||||||||||||||||||||||||||||||||||
| $ | 56,001 | 297 | .53 | $ | 54,032 | 143 | .26 | $ | 46,079 | 87 | .19 | 10.4 | % | 18.8 | |||||||||||||||||||||||||||
| 5,704 | 14 | .24 | 6,569 | 13 | .20 | 3,957 | 3 | .07 | 5.8 | (7.8) | |||||||||||||||||||||||||||||||
| 7,728 | 139 | 1.80 | 6,233 | 82 | 1.31 | 3,911 | 48 | 1.22 | 2.9 | 11.6 | |||||||||||||||||||||||||||||||
| 5,025 | 67 | 1.34 | 4,698 | 40 | .85 | 4,088 | 33 | .81 | (.2) | 11.2 | |||||||||||||||||||||||||||||||
| — | — | — | — | — | — | — | — | — | N/M | N/M | |||||||||||||||||||||||||||||||
| 74,458 | 517 | .69 | 71,532 | 278 | .39 | 58,035 | 171 | .30 | 9.1 | 15.2 | |||||||||||||||||||||||||||||||
| 928 | 11 | 1.14 | 517 | 1 | .24 | 487 | 1 | .10 | 6.6 | 43.1 | |||||||||||||||||||||||||||||||
| 915 | 21 | 2.34 | 1,140 | 15 | 1.34 | 852 | 10 | 1.18 | 11.3 | 3.7 | |||||||||||||||||||||||||||||||
| 12,715 | 420 | 3.27 | 11,921 | 319 | 2.69 | 9,802 | 218 | 2.29 | 5.1 | 5.6 | |||||||||||||||||||||||||||||||
| 89,016 | 969 | 1.09 | 85,110 | 613 | .72 | 69,176 | 400 | .58 | 8.5 | 10.2 | |||||||||||||||||||||||||||||||
| 30,593 | 31,414 | 28,317 | 5.9 | ||||||||||||||||||||||||||||||||||||||
| 2,071 | 1,970 | 2,393 | .3 | ||||||||||||||||||||||||||||||||||||||
| 1,212 | 1,448 | 1,706 | (14.6) | ||||||||||||||||||||||||||||||||||||||
| 122,892 | 119,942 | 101,592 | 7.4 | ||||||||||||||||||||||||||||||||||||||
| 15,131 | 15,224 | 12,647 | 6.9 | ||||||||||||||||||||||||||||||||||||||
| 1 | 1 | 5 | (100.0) | ||||||||||||||||||||||||||||||||||||||
| 15,132 | 15,225 | 12,652 | 6.9 | ||||||||||||||||||||||||||||||||||||||
| $ | 138,024 | $ | 135,167 | $ | 114,244 | 7.3 | % | ||||||||||||||||||||||||||||||||||
| 2.85 | % | 2.95 | % | 2.73 | % | ||||||||||||||||||||||||||||||||||||
| 3,940 | 3.17 | % | 3,830 | 3.17 | % | 2,953 | 2.92 | % | 6.6 | ||||||||||||||||||||||||||||||||
| 31 | 53 | 34 | (3.1) | ||||||||||||||||||||||||||||||||||||||
| $ | 3,909 | $ | 3,777 | $ | 2,919 | 6.7 | % | ||||||||||||||||||||||||||||||||||
| 2020 vs. 2019 | |||||||||||
| in millions |
Average
Volume
|
Yield/ Rate |
Net Change
(a)
|
||||||||
| INTEREST INCOME | |||||||||||
| Loans | $ | 463 | $ | (867) | $ | (404) | |||||
| Loans held for sale | 22 | (16) | 6 | ||||||||
| Securities available for sale | 56 | (109) | (53) | ||||||||
| Held-to-maturity securities | (47) | 7 | (40) | ||||||||
| Trading account assets | (6) | (6) | (12) | ||||||||
| Short-term investments | 48 | (91) | (43) | ||||||||
| Other investments | — | (7) | (7) | ||||||||
| Total interest income (TE) | 536 | (1,089) | (553) | ||||||||
| INTEREST EXPENSE | |||||||||||
| NOW and money market deposit accounts | 91 | (451) | (360) | ||||||||
| Savings deposits | — | (2) | (2) | ||||||||
| Certificates of deposit ($100,000 or more) | (65) | (32) | (97) | ||||||||
| Other time deposits | (23) | (24) | (47) | ||||||||
| Total interest-bearing deposits | 3 | (509) | (506) | ||||||||
| Federal funds purchased and securities sold under repurchase agreements | 4 | — | 4 | ||||||||
| Bank notes and other short-term borrowings | 10 | (15) | (5) | ||||||||
| Long-term debt | (16) | (152) | (168) | ||||||||
| Total interest expense | 1 | (676) | (675) | ||||||||
| Net interest income (TE) | $ | 535 | $ | (413) | $ | 122 | |||||
| Year ended December 31, | Change 2020 vs. 2019 | |||||||||||||
| dollars in millions | 2020 | 2019 | Amount | Percent | ||||||||||
| Assets under management by investment type: | ||||||||||||||
| Equity | $ | 27,384 | $ | 25,271 | $ | 2,113 | 8.4 | % | ||||||
| Securities lending | 131 | 309 | (178) | (57.6) | ||||||||||
| Fixed income | 12,130 | 11,000 | 1,130 | 10.3 | ||||||||||
| Money market | 4,495 | 4,253 | 242 | 5.7 | ||||||||||
| Total | $ | 44,140 | $ | 40,833 | $ | 3,307 | 8.1 | % | ||||||
|
Year ended December 31,
dollars in millions
|
Change 2020 vs. 2019 | |||||||||||||
| 2020 | 2019 | Amount | Percent | |||||||||||
| Salaries and contract labor | $ | 1,329 | $ | 1,268 | $ | 61 | 4.8 | % | ||||||
|
Incentive and stock-based compensation
(a)
|
627 | 584 | 43 | 7.4 | ||||||||||
| Employee benefits | 350 | 348 | 2 | .6 | ||||||||||
| Severance | 30 | 50 | (20) | (40.0) | ||||||||||
| Total personnel expense | $ | 2,336 | $ | 2,250 | $ | 86 | 3.8 | % | ||||||
| Outstanding Balance of Loans and Leases | ||||||||||||||
| December 31, 2020 | ||||||||||||||
| dollars in millions | Completed Relief | In Active Relief | Total that have Received Payment Relief | |||||||||||
| Commercial Loans | $ | 2,899 | $ | 181 | $ | 3,079 | ||||||||
| Consumer Loans | 1,179 | 394 | 1,572 | |||||||||||
| Total Portfolio Loans and Leases | $ | 4,077 | $ | 575 | $ | 4,652 | ||||||||
| dollars in millions | Outstanding as of December 31, 2020 | Percentage of total loans as of December 31, 2020 | |||||||||
|
Consumer behavior
(a)
|
$ | 5,083 | 5.0 | % | |||||||
| Education | 1,541 | 1.5 | |||||||||
| Sports | 690 | .7 | |||||||||
| Restaurants | 400 | .4 | |||||||||
|
Retail commercial real estate
(b)
|
525 | .5 | |||||||||
|
Nondurable retail
(c)
|
638 | .6 | |||||||||
|
Travel/Tourism
(d)
|
2,523 | 2.5 | |||||||||
| Hotels | 784 | .8 | |||||||||
|
Leveraged lending
(e)
|
1,700 | 1.7 | |||||||||
| Oil and gas | 1,992 | 2.0 | |||||||||
| Upstream (reserve based) | 1,263 | 1.2 | |||||||||
| Midstream | 468 | .5 | |||||||||
| Downstream | 98 | .1 | |||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
|
December 31,
dollars in millions
|
Amount |
Percent
of Total
|
Amount |
Percent
of Total
|
Amount |
Percent
of Total
|
||||||||||||||||||||||||||||||||
| COMMERCIAL | ||||||||||||||||||||||||||||||||||||||
|
Commercial and industrial
(a)
|
$ | 52,907 | 52.3 | % | $ | 48,295 | 51.0 | % | $ | 45,753 | 51.1 | % | ||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | 12,687 | 12.5 | 13,491 | 14.3 | 14,285 | 15.9 | ||||||||||||||||||||||||||||||||
| Construction | 1,987 | 2.0 | 1,558 | 1.6 | 1,666 | 1.9 | ||||||||||||||||||||||||||||||||
| Total commercial real estate loans | 14,674 | 14.5 | 15,049 | 15.9 | 15,951 | 17.8 | ||||||||||||||||||||||||||||||||
|
Commercial lease financing
(b)
|
4,399 | 4.3 | 4,688 | 5.0 | 4,606 | 5.1 | ||||||||||||||||||||||||||||||||
| Total commercial loans | 71,980 | 71.1 | 68,032 | 71.9 | 66,310 | 74.0 | ||||||||||||||||||||||||||||||||
| CONSUMER | ||||||||||||||||||||||||||||||||||||||
| Real estate — residential mortgage | 9,298 | 9.2 | 7,023 | 7.4 | 5,513 | 6.2 | ||||||||||||||||||||||||||||||||
| Home equity loans | 9,360 | 9.2 | 10,274 | 10.9 | 11,142 | 12.4 | ||||||||||||||||||||||||||||||||
| Consumer direct loans | 4,714 | 4.7 | 3,513 | 3.7 | 1,809 | 2.0 | ||||||||||||||||||||||||||||||||
| Credit cards | 989 | 1.0 | 1,130 | 1.2 | 1,144 | 1.3 | ||||||||||||||||||||||||||||||||
| Consumer indirect loans | 4,844 | 4.8 | 4,674 | 4.9 | 3,634 | 4.1 | ||||||||||||||||||||||||||||||||
| Total consumer loans | 29,205 | 28.9 | 26,614 | 28.1 | 23,242 | 26.0 | ||||||||||||||||||||||||||||||||
|
Total loans
(c)
|
$ | 101,185 | 100.0 | % | $ | 94,646 | 100.0 | % | $ | 89,552 | 100.0 | % | ||||||||||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||||||||||||||||||||
| Amount |
Percent
of Total
|
Amount |
Percent
of Total
|
|||||||||||||||||||||||||||||||||||
| COMMERCIAL | ||||||||||||||||||||||||||||||||||||||
|
Commercial and industrial
(a)
|
$ | 41,859 | 48.4 | % | $ | 39,768 | 46.2 | % | ||||||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | 14,088 | 16.3 | % | 15,111 | 17.6 | % | ||||||||||||||||||||||||||||||||
| Construction | 1,960 | 2.3 | 2,345 | 2.7 | ||||||||||||||||||||||||||||||||||
| Total commercial real estate loans | 16,048 | 18.6 | 17,456 | 20.3 | ||||||||||||||||||||||||||||||||||
|
Commercial lease financing
(b)
|
4,826 | 5.6 | 4,685 | 5.5 | ||||||||||||||||||||||||||||||||||
| Total commercial loans | 62,733 | 72.6 | 61,909 | 72.0 | ||||||||||||||||||||||||||||||||||
| CONSUMER | ||||||||||||||||||||||||||||||||||||||
| Real estate — residential mortgage | 5,483 | 6.3 | 5,547 | 6.4 | ||||||||||||||||||||||||||||||||||
| Home equity loans | 12,028 | 13.9 | 12,674 | 14.7 | ||||||||||||||||||||||||||||||||||
| Consumer direct loans | 1,794 | 2.1 | 1,788 | 2.1 | ||||||||||||||||||||||||||||||||||
| Credit cards | 1,106 | 1.3 | 1,111 | 1.3 | ||||||||||||||||||||||||||||||||||
| Consumer indirect loans | 3,261 | 3.8 | 3,009 | 3.5 | ||||||||||||||||||||||||||||||||||
| Total consumer loans | 23,672 | 27.4 | 24,129 | 28.0 | ||||||||||||||||||||||||||||||||||
|
Total loans
(c)
|
$ | 86,405 | 100.0 | % | $ | 86,038 | 100.0 | % | ||||||||||||||||||||||||||||||
| December 31, 2020 | Commercial and industrial |
Commercial
real estate |
Commercial
lease financing |
Total commercial
loans |
Percent of
total |
||||||||||||||||||||||||
| dollars in millions | |||||||||||||||||||||||||||||
| Industry classification: | |||||||||||||||||||||||||||||
| Agriculture | $ | 1,002 | $ | 148 | $ | 97 | $ | 1,247 | 1.7 | % | |||||||||||||||||||
| Automotive | 1,863 | 510 | 19 | 2,392 | 3.3 | ||||||||||||||||||||||||
| Business products | 1,523 | 117 | 45 | 1,685 | 2.3 | ||||||||||||||||||||||||
| Business services | 4,098 | 221 | 202 | 4,521 | 6.3 | ||||||||||||||||||||||||
| Chemicals | 700 | 30 | 34 | 764 | 1.1 | ||||||||||||||||||||||||
| Construction materials and contractors | 2,571 | 271 | 233 | 3,075 | 4.3 | ||||||||||||||||||||||||
| Consumer discretionary | 3,832 | 404 | 371 | 4,607 | 6.4 | ||||||||||||||||||||||||
| Consumer services | 6,123 | 900 | 525 | 7,548 | 10.5 | ||||||||||||||||||||||||
| Equipment | 1,447 | 84 | 120 | 1,651 | 2.3 | ||||||||||||||||||||||||
| Finance | 6,190 | 92 | 396 | 6,678 | 9.3 | ||||||||||||||||||||||||
| Healthcare | 4,348 | 1,396 | 306 | 6,050 | 8.4 | ||||||||||||||||||||||||
| Metals and mining | 1,074 | 56 | 29 | 1,159 | 1.6 | ||||||||||||||||||||||||
| Oil and gas | 1,928 | 43 | 62 | 2,033 | 2.8 | ||||||||||||||||||||||||
| Public exposure | 2,332 | 25 | 709 | 3,066 | 4.3 | ||||||||||||||||||||||||
| Commercial real estate | 5,966 | 10,187 | 11 | 16,164 | 22.5 | ||||||||||||||||||||||||
| Technology | 741 | 20 | 191 | 952 | 1.2 | ||||||||||||||||||||||||
| Transportation | 1,434 | 144 | 631 | 2,209 | 3.1 | ||||||||||||||||||||||||
| Utilities | 5,239 | 1 | 397 | 5,637 | 7.8 | ||||||||||||||||||||||||
| Other | 496 | 25 | 21 | 542 | .8 | ||||||||||||||||||||||||
| Total | $ | 52,907 | $ | 14,674 | $ | 4,399 | $ | 71,980 | 100.0 | % | |||||||||||||||||||
| December 31, 2019 | Commercial and industrial |
Commercial
real estate |
Commercial
lease financing |
Total commercial
loans |
Percent of
total |
||||||||||||||||||||||||
| dollars in millions | |||||||||||||||||||||||||||||
| Industry classification: | |||||||||||||||||||||||||||||
| Agriculture | $ | 1,036 | $ | 178 | $ | 112 | $ | 1,326 | 1.9 | % | |||||||||||||||||||
| Automotive | 2,048 | 467 | 18 | 2,533 | 3.7 | ||||||||||||||||||||||||
| Business products | 1,513 | 111 | 57 | 1,681 | 2.5 | ||||||||||||||||||||||||
| Business services | 3,083 | 203 | 210 | 3,496 | 5.2 | ||||||||||||||||||||||||
| Chemicals | 776 | 40 | 46 | 862 | 1.3 | ||||||||||||||||||||||||
| Construction materials and contractors | 1,876 | 238 | 244 | 2,358 | 3.5 | ||||||||||||||||||||||||
| Consumer discretionary | 3,646 | 400 | 467 | 4,513 | 6.6 | ||||||||||||||||||||||||
| Consumer services | 4,567 | 863 | 535 | 5,965 | 8.8 | ||||||||||||||||||||||||
| Equipment | 1,428 | 76 | 98 | 1,602 | 2.4 | ||||||||||||||||||||||||
| Finance | 6,186 | 64 | 386 | 6,636 | 9.7 | ||||||||||||||||||||||||
| Healthcare | 3,000 | 1,564 | 331 | 4,895 | 7.2 | ||||||||||||||||||||||||
| Metals and mining | 1,117 | 44 | 41 | 1,202 | 1.8 | ||||||||||||||||||||||||
| Oil and gas | 2,219 | 54 | 90 | 2,363 | 3.5 | ||||||||||||||||||||||||
| Public exposure | 2,422 | 24 | 706 | 3,152 | 4.6 | ||||||||||||||||||||||||
| Commercial real estate | 5,126 | 10,469 | 12 | 15,607 | 22.9 | ||||||||||||||||||||||||
| Technology | 916 | 27 | 182 | 1,125 | 1.6 | ||||||||||||||||||||||||
| Transportation | 1,298 | 218 | 737 | 2,253 | 3.3 | ||||||||||||||||||||||||
| Utilities | 5,560 | 2 | 397 | 5,959 | 8.8 | ||||||||||||||||||||||||
| Other | 478 | 7 | 19 | 504 | .7 | ||||||||||||||||||||||||
| Total | $ | 48,295 | $ | 15,049 | $ | 4,688 | $ | 68,032 | 100.0 | % | |||||||||||||||||||
| Geographic Region | |||||||||||||||||||||||||||||||||||
| dollars in millions | West | Southwest | Central | Midwest | Southeast | Northeast | National | Total | Percent of Total | Construction |
Commercial
Mortgage
|
||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
| Retail properties | $ | 119 | $ | 15 | $ | 129 | $ | 122 | $ | 72 | $ | 448 | $ | 122 | $ | 1,027 | 6.8 | % | $ | 54 | $ | 973 | |||||||||||||
| Multifamily properties | 685 | 228 | 875 | 800 | 1,284 | 1,493 | 229 | 5,594 | 38.1 | 1,442 | 4,152 | ||||||||||||||||||||||||
| Health facilities | 83 | 53 | 85 | 87 | 170 | 487 | 338 | 1,303 | 8.7 | 91 | 1,212 | ||||||||||||||||||||||||
| Office buildings | 276 | — | 253 | 142 | 193 | 628 | 147 | 1,639 | 11.2 | 48 | 1,591 | ||||||||||||||||||||||||
| Warehouses | 54 | 31 | 66 | 40 | 52 | 259 | 161 | 663 | 4.6 | 74 | 589 | ||||||||||||||||||||||||
| Manufacturing facilities | 42 | — | 28 | 15 | 40 | 34 | 43 | 202 | 1.3 | 10 | 192 | ||||||||||||||||||||||||
| Hotels/Motels | 76 | — | 19 | — | 12 | 107 | 91 | 305 | 2.1 | 18 | 287 | ||||||||||||||||||||||||
| Residential properties | — | — | — | 3 | — | 53 | — | 56 | .4 | — | 56 | ||||||||||||||||||||||||
| Land and development | 15 | 5 | — | 2 | 5 | 28 | — | 55 | .4 | 33 | 22 | ||||||||||||||||||||||||
| Other | 108 | 22 | 6 | 93 | 69 | 245 | 279 | 822 | 6.4 | 65 | 757 | ||||||||||||||||||||||||
| Total nonowner-occupied | 1,458 | 354 | 1,461 | 1,304 | 1,897 | 3,782 | 1,410 | 11,666 | 80.0 | 1,835 | 9,831 | ||||||||||||||||||||||||
| Owner-occupied | 870 | 4 | 275 | 499 | 63 | 1,297 | — | 3,008 | 20.0 | 152 | 2,856 | ||||||||||||||||||||||||
| Total | $ | 2,328 | $ | 358 | $ | 1,736 | $ | 1,803 | $ | 1,960 | $ | 5,079 | $ | 1,410 | $ | 14,674 | 100.0 | % | $ | 1,987 | $ | 12,687 | |||||||||||||
| Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
| Nonperforming loans | $ | 1 | — | — | $ | 7 | $ | 6 | $ | 44 | $ | 44 | $ | 103 | N/M | $ | — | $ | 103 | ||||||||||||||||
|
Accruing loans past due 90 days or more
|
— | — | — | 1 | — | 22 | — | 22 | N/M | 1 | 21 | ||||||||||||||||||||||||
|
Accruing loans past due 30 through 89 days
|
3 | — | — | 2 | 3 | 7 | — | 14 | N/M | — | 14 | ||||||||||||||||||||||||
| December 31, 2019 | |||||||||||||||||||||||||||||||||||
| Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
| Retail properties | $ | 133 | $ | 41 | $ | 143 | $ | 155 | $ | 161 | $ | 580 | $ | 124 | $ | 1,337 | 8.9 | % | $ | 85 | $ | 1,252 | |||||||||||||
| Multifamily properties | 698 | 354 | 767 | 795 | 1,205 | 1,350 | 225 | 5,394 | 35.8 | 1,189 | 4,205 | ||||||||||||||||||||||||
| Health facilities | 76 | 44 | 104 | 93 | 163 | 497 | 405 | 1,382 | 9.2 | 40 | 1,342 | ||||||||||||||||||||||||
| Office buildings | 214 | 7 | 293 | 132 | 244 | 725 | 134 | 1,749 | 11.6 | 69 | 1,680 | ||||||||||||||||||||||||
| Warehouses | 51 | 34 | 51 | 51 | 46 | 238 | 134 | 605 | 4.0 | 7 | 598 | ||||||||||||||||||||||||
| Manufacturing facilities | 36 | — | 38 | 4 | 40 | 43 | 54 | 215 | 1.4 | 5 | 210 | ||||||||||||||||||||||||
| Hotels/Motels | 76 | — | 19 | — | 12 | 129 | 57 | 293 | 1.9 | 6 | 287 | ||||||||||||||||||||||||
| Residential properties | — | — | — | 2 | — | 98 | — | 100 | .7 | 5 | 95 | ||||||||||||||||||||||||
| Land and development | 20 | 5 | — | 3 | 2 | 9 | — | 39 | .3 | 34 | 5 | ||||||||||||||||||||||||
| Other | 80 | 9 | 71 | 86 | 22 | 259 | 358 | 885 | 5.9 | 23 | 862 | ||||||||||||||||||||||||
| Total nonowner-occupied | 1,384 | 494 | 1,486 | 1,321 | 1,895 | 3,928 | 1,491 | 11,999 | 79.7 | 1,463 | 10,536 | ||||||||||||||||||||||||
| Owner-occupied | 833 | 4 | 285 | 536 | 71 | 1,321 | — | 3,050 | 20.3 | 95 | 2,955 | ||||||||||||||||||||||||
| Total | $ | 2,217 | $ | 498 | $ | 1,771 | $ | 1,857 | $ | 1,966 | $ | 5,249 | $ | 1,491 | $ | 15,049 | 100.0 | % | $ | 1,558 | $ | 13,491 | |||||||||||||
| Nonperforming loans | $ | 1 | — | — | $ | 7 | 7 | $ | 20 | $ | 52 | $ | 87 | N/M | 2 | $ | 85 | ||||||||||||||||||
|
Accruing loans past due 90 days or more
|
— | — | — | 2 | $ | — | 11 | — | 13 | N/M | $ | 1 | 12 | ||||||||||||||||||||||
|
Accruing loans past due 30 through 89 days
|
1 | — | $ | — | 7 | — | 8 | — | 16 | N/M | 2 | 14 | |||||||||||||||||||||||
| West – | Alaska, California, Hawaii, Idaho, Montana, Oregon, Washington, and Wyoming | ||||
| Southwest – | Arizona, Nevada, and New Mexico | ||||
| Central – | Arkansas, Colorado, Oklahoma, Texas, and Utah | ||||
| Midwest – | Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin | ||||
| Southeast – | Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington, D.C., and West Virginia | ||||
| Northeast – | Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont | ||||
| National – | Accounts in three or more regions | ||||
| December 31, 2020 | Real estate — residential mortgage | Home equity loans | Consumer direct loans | Credit cards | Consumer indirect loans | Total | ||||||||||||||
| State | ||||||||||||||||||||
| New York | $ | 1,164 | $ | 2,553 | $ | 593 | $ | 353 | $ | 731 | $ | 5,394 | ||||||||
| Ohio | 698 | 1,375 | 479 | 217 | 957 | 3,726 | ||||||||||||||
| Washington | 1,835 | 1,300 | 236 | 86 | 20 | 3,477 | ||||||||||||||
| Pennsylvania | 516 | 14 | 303 | 4 | 19 | 856 | ||||||||||||||
| California | 286 | 648 | 255 | 52 | 539 | 1,780 | ||||||||||||||
| Texas | 74 | 7 | 241 | 3 | 10 | 335 | ||||||||||||||
| Colorado | 828 | 345 | 140 | 30 | 6 | 1,349 | ||||||||||||||
| Connecticut | 914 | 352 | 87 | 25 | 141 | 1,519 | ||||||||||||||
| Oregon | 720 | 782 | 97 | 41 | 4 | 1,644 | ||||||||||||||
| Massachusetts | 239 | 48 | 103 | 5 | 460 | 855 | ||||||||||||||
| Other | 2,024 | 1,936 | 2,180 | 173 | 1,957 | 8,270 | ||||||||||||||
| Total | $ | 9,298 | $ | 9,360 | $ | 4,714 | $ | 989 | $ | 4,844 | $ | 29,205 | ||||||||
| December 31, 2019 | ||||||||||||||||||||
| New York | $ | 1,146 | $ | 2,655 | $ | 548 | $ | 404 | $ | 797 | $ | 5,550 | ||||||||
| Ohio | 601 | 1,458 | 461 | 247 | 827 | 3,594 | ||||||||||||||
| Washington | 1,126 | 1,546 | 252 | 102 | 8 | 3,034 | ||||||||||||||
| Connecticut | 282 | 677 | 189 | 55 | 477 | 1,680 | ||||||||||||||
| Pennsylvania | 1,029 | 375 | 68 | 26 | 154 | 1,652 | ||||||||||||||
| Oregon | 517 | 852 | 94 | 48 | 2 | 1,513 | ||||||||||||||
| Colorado | 544 | 428 | 109 | 34 | 2 | 1,117 | ||||||||||||||
| Massachusetts | 123 | 434 | 71 | 38 | 359 | 1,025 | ||||||||||||||
| California | 117 | 412 | 131 | 47 | 118 | 825 | ||||||||||||||
| Texas | 257 | 48 | 62 | 6 | 437 | 810 | ||||||||||||||
| Other | 1,281 | 1,389 | 1,528 | 123 | 1,493 | 5,814 | ||||||||||||||
| Total | $ | 7,023 | $ | 10,274 | $ | 3,513 | $ | 1,130 | $ | 4,674 | $ | 26,614 | ||||||||
| in millions | Commercial |
Commercial
Real Estate
|
Commercial
Lease
Financing
|
Residential
Real Estate
|
Consumer Direct | Total | ||||||||||||||
| 2020 | ||||||||||||||||||||
| Fourth quarter | $ | 197 | $ | 2,412 | $ | 135 | $ | 1,256 | — | $ | 4,000 | |||||||||
| Third quarter | 163 | 1,999 | 67 | 1,235 | $ | 208 | 3,672 | |||||||||||||
| Second quarter | 82 | 2,661 | 47 | 925 | — | 3,715 | ||||||||||||||
| First quarter | 55 | 2,022 | 81 | 546 | — | 2,704 | ||||||||||||||
| Total | $ | 497 | $ | 9,094 | $ | 330 | $ | 3,962 | $ | 208 | $ | 14,091 | ||||||||
| 2019 | ||||||||||||||||||||
| Fourth quarter | $ | 50 | $ | 3,138 | $ | 222 | $ | 559 | — | $ | 3,969 | |||||||||
| Third quarter | 220 | 2,600 | 68 | 569 | 247 | 3,704 | ||||||||||||||
| Second quarter | 154 | 1,864 | 96 | 329 | — | 2,443 | ||||||||||||||
| First quarter | 301 | 1,536 | 34 | 225 | — | 2,096 | ||||||||||||||
| Total | $ | 725 | $ | 9,138 | $ | 420 | $ | 1,682 | 247 | $ | 12,212 | |||||||||
|
December 31,
in millions
|
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
| Commercial real estate loans | $ | 371,016 | $ | 347,186 | $ | 291,158 | $ | 238,718 | $ | 218,135 | |||||||
| Residential mortgage | 8,311 | 6,146 | 5,209 | 4,582 | 4,198 | ||||||||||||
| Education loans | 516 | 625 | 766 | 932 | 1,122 | ||||||||||||
| Commercial lease financing | 1,359 | 1,047 | 916 | 862 | 899 | ||||||||||||
| Commercial loans | 684 | 591 | 549 | 488 | 418 | ||||||||||||
| Consumer direct | 1,711 | 2,243 | — | — | — | ||||||||||||
| Total | $ | 383,597 | $ | 357,838 | $ | 298,598 | $ | 245,582 | $ | 224,772 | |||||||
| December 31, 2020 | ||||||||||||||
| in millions | Within One Year | One - Five Years | Over Five Years | Total | ||||||||||
| Commercial and industrial | $ | 11,496 | $ | 34,546 | $ | 6,866 | $ | 52,907 | ||||||
| Real estate — construction | 944 | 726 | 316 | 1,987 | ||||||||||
| Total | $ | 12,440 | $ | 35,272 | $ | 7,182 | $ | 54,894 | ||||||
|
Loans with floating or adjustable interest rates
(a)
|
$ | 25,476 | $ | 3,897 | $ | 29,373 | ||||||||
|
Loans with predetermined interest rates
(b)
|
9,796 | 3,285 | 13,081 | |||||||||||
| Total | $ | 35,272 | $ | 7,182 | $ | 42,454 | ||||||||
|
December 31,
in millions
|
2020 | 2019 | ||||||
| FHLMC | $ | 8,782 | $ | 5,115 | ||||
| FNMA | 13,213 | 12,308 | ||||||
| GNMA | 12,109 | 14,112 | ||||||
|
Total
(a)
|
$ | 34,104 | $ | 31,535 | ||||
| dollars in millions | U.S. Treasury, Agencies, and Corporations | States and Political Subdivisions |
Agency Residential Collateralized Mortgage Obligations
(a)
|
Agency Residential Mortgage-backed Securities
(a),(b)
|
Agency Commercial Mortgage-backed Securities
(a)
|
Other
Securities |
Total |
Weighted-Average Yield
(b)
|
||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| Remaining maturity: | ||||||||||||||||||||||||||
| One year or less | $ | 1,000 | $ | — | $ | 883 | $ | 1 | — | $ | 12 | $ | 1,896 | 0.63 | % | |||||||||||
| After one through five years | — | — | 10,257 | 2,145 | $ | 3,489 | — | 15,891 | 2.08 | |||||||||||||||||
| After five through ten years | — | — | 3,133 | 16 | 3,814 | 1 | 6,964 | 2.84 | ||||||||||||||||||
| After ten years | — | — | — | 2 | 2,803 | — | 2,805 | 1.35 | ||||||||||||||||||
| Fair value | $ | 1,000 | $ | — | $ | 14,273 | $ | 2,164 | $ | 10,106 | $ | 13 | $ | 27,556 | — | |||||||||||
| Amortized cost | 1,000 | — | 14,001 | 2,094 | 9,707 | 8 | 26,810 | 2.09 | % | |||||||||||||||||
|
Weighted-average yield
(b)
|
0.16 | % | — | 1.78 | % | 1.99 | % | 2.77 | % | .05 | % | 2.09 | % | — | ||||||||||||
|
Weighted-average maturity
|
— years | — years | 3.8 years | 3.6 years | 7.5 years | .7 years | 4.5 years | — | ||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| Fair value | $ | 334 | $ | 4 | $ | 12,783 | $ | 1,714 | $ | 6,997 | $ | 11 | $ | 21,843 | — | |||||||||||
| Amortized cost | 334 | 4 | 12,772 | 1,677 | 6,898 | 7 | 21,692 | 2.52 | % | |||||||||||||||||
| dollars in millions |
Agency Residential Collateralized Mortgage Obligations
(a)
|
Agency Residential Mortgage-backed Securities
(a)
|
Agency Commercial Mortgage-backed Securities
(a)
|
Asset-backed securities |
Other
Securities |
Total |
Weighted-Average Yield
(b)
|
||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||
| Remaining maturity: | |||||||||||||||||||||||
| One year or less | $ | 70 | — | — | $ | 4 | $ | 3 | $ | 77 | 2.49 | % | |||||||||||
| After one through five years | 2,903 | $ | 234 | $ | 1,777 | 15 | 12 | 4,941 | 2.40 | ||||||||||||||
| After five through ten years | 802 | 37 | 1,738 | — | — | 2,577 | 2.58 | ||||||||||||||||
| After ten years | — | — | — | — | — | — | — | ||||||||||||||||
| Amortized cost | $ | 3,775 | $ | 271 | $ | 3,515 | $ | 19 | $ | 15 | $ | 7,595 | 2.46 | % | |||||||||
| Fair value | 3,899 | 285 | 3,805 | 19 | 15 | 8,023 | — | ||||||||||||||||
|
Weighted-average yield
(b)
|
2.11 | % | 2.50 | % | 2.83 | % | 1.72 | % | 3.01 | % | 2.46 | % | — | ||||||||||
|
Weighted-average maturity
|
3.7 years | 4.4 years | 5.0 years | 2.8 years | 2.0 years | 4.3 years | — | ||||||||||||||||
| December 31, 2019 | |||||||||||||||||||||||
| Amortized cost | $ | 5,692 | $ | 409 | $ | 3,940 | 11 | $ | 15 | $ | 10,067 | 2.43 | % | ||||||||||
| Fair value | 5,666 | 415 | 4,009 | 11 | 15 | 10,116 | — | ||||||||||||||||
Deposits are our primary source of funding. At December 31, 2020, our deposits totaled $135.3 billion, an increase of $23.4 billion, compared to December 31, 2019. The increase in deposits compared to the prior year reflects the impact of PPP and government stimulus programs, in addition to our strategy to acquire and expand client relationships.
| December 31, 2020 | Total | ||||
| in millions | |||||
| Remaining maturity: | |||||
| Three months or less | $ | 701 | |||
| After three through six months | 773 | ||||
| After six through twelve months | 835 | ||||
| After twelve months | 424 | ||||
| Total | $ | 2,733 | |||
| 2020 Quarters | ||||||||||||||||||||
| in thousands | 2020 | Fourth | Third | Second | First | 2019 | ||||||||||||||
| Shares outstanding at beginning of period | 977,189 | 976,205 | 975,947 | 975,319 | 977,189 | 1,019,503 | ||||||||||||||
| Open market repurchases and return of shares under employee compensation plans | (8,974) | (1,092) | (1) | (19) | (7,862) | (50,247) | ||||||||||||||
| Shares issued under employee compensation plans (net of cancellations) | 7,558 | 660 | 259 | 647 | 5,992 | 7,933 | ||||||||||||||
| Shares outstanding at end of period | 975,773 | 975,773 | 976,205 | 975,947 | 975,319 | 977,189 | ||||||||||||||
|
December 31,
dollars in millions
|
2020 | 2019 | |||||||||
| COMMON EQUITY TIER 1 | |||||||||||
| Key shareholders’ equity (GAAP) | $ | 17,981 | $ | 17,038 | |||||||
| Less: |
Preferred Stock
(a)
|
1,856 | 1,856 | ||||||||
| Add: |
CECL phase-in
(b)
|
375 | — | ||||||||
| Common Equity Tier 1 capital before adjustments and deductions | 16,500 | 15,182 | |||||||||
| Less: | Goodwill, net of deferred taxes | 2,560 | 2,584 | ||||||||
| Intangible assets, net of deferred taxes | 151 | 207 | |||||||||
| Deferred tax assets | 1 | 9 | |||||||||
| Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes | 583 | 115 | |||||||||
| Accumulated gains (losses) on cash flow hedges, net of deferred taxes | 460 | 250 | |||||||||
| Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes | (306) | (339) | |||||||||
| Total Common Equity Tier 1 capital | 13,051 | 12,356 | |||||||||
| TIER 1 CAPITAL | |||||||||||
| Common Equity Tier 1 | 13,051 | 12,356 | |||||||||
| Additional Tier 1 capital instruments and related surplus | 1,856 | 1,856 | |||||||||
| Less: | Deductions | — | — | ||||||||
| Total Tier 1 capital | 14,907 | 14,212 | |||||||||
| TIER 2 CAPITAL | |||||||||||
| Tier 2 capital instruments and related surplus | 1,657 | 1,546 | |||||||||
|
Allowance for losses on loans and liability for losses on lending-related commitments
(b)
|
1,412 | 978 | |||||||||
| Less: | Deductions | — | — | ||||||||
| Total Tier 2 capital | 3,069 | 2,524 | |||||||||
| Total risk-based capital | $ | 17,976 | $ | 16,736 | |||||||
| RISK-WEIGHTED ASSETS | |||||||||||
| Risk-weighted assets on balance sheet | $ | 103,604 | $ | 102,441 | |||||||
| Risk-weighted off-balance sheet exposure | 29,240 | 27,303 | |||||||||
| Market risk-equivalent assets | 1,354 | 1,121 | |||||||||
| Gross risk-weighted assets | 134,198 | 130,865 | |||||||||
| Less: | Excess allowance for loan and lease losses | — | — | ||||||||
| Net risk-weighted assets | $ | 134,198 | $ | 130,865 | |||||||
| AVERAGE QUARTERLY TOTAL ASSETS | $ | 166,771 | $ | 143,910 | |||||||
| CAPITAL RATIOS | |||||||||||
| Tier 1 risk-based capital | 11.11 | % | 10.86 | % | |||||||
| Total risk-based capital | 13.40 | 12.79 | |||||||||
|
Leverage
(c)
|
8.94 | 9.88 | |||||||||
| Common Equity Tier 1 | 9.73 | 9.44 | |||||||||
| December 31, 2020 |
Within 1
year
|
After 1
through 3
years
|
After 3
through 5
years
|
After 5
years
|
Total | ||||||||||||
| in millions | |||||||||||||||||
|
Contractual obligations:
(a)
|
|||||||||||||||||
| Deposits with no stated maturity | $ | 129,539 | — | — | — | $ | 129,539 | ||||||||||
| Time deposits of $100,000 or more | 2,309 | $ | 378 | $ | 38 | $ | 8 | 2,733 | |||||||||
| Other time deposits | 2,382 | 527 | 91 | 10 | 3,010 | ||||||||||||
|
Federal funds purchased and securities sold under repurchase agreements
|
220 | — | — | — | 220 | ||||||||||||
| Bank notes and other short-term borrowings | 759 | — | — | — | 759 | ||||||||||||
| Long-term debt | 2,587 | 3,634 | 2,435 | 5,053 | 13,709 | ||||||||||||
| Noncancellable operating leases | 143 | 252 | 178 | 236 | 809 | ||||||||||||
| Liability for unrecognized tax benefits | 58 | — | — | — | 58 | ||||||||||||
|
Purchase obligations
(b)
|
213 | 277 | 70 | 5 | 565 | ||||||||||||
| Total | $ | 138,210 | $ | 5,068 | $ | 2,812 | $ | 5,312 | $ | 151,402 | |||||||
|
Lending-related and other off-balance sheet commitments:
|
|||||||||||||||||
| Commercial, including real estate | $ | 17,903 | $ | 19,650 | $ | 11,719 | $ | 885 | $ | 50,157 | |||||||
| Home equity | 490 | 510 | 613 | 7,686 | 9,299 | ||||||||||||
| Credit cards | 6,685 | — | — | — | 6,685 | ||||||||||||
| Purchase cards | 708 | — | — | — | 708 | ||||||||||||
| Commercial letters of credit | 61 | 7 | 6 | — | 74 | ||||||||||||
| Principal investing commitments | 11 | 5 | — | — | 16 | ||||||||||||
| Tax credit investment commitments | 487 | — | — | — | 487 | ||||||||||||
| Total | $ | 26,345 | $ | 20,171 | $ | 12,338 | $ | 8,571 | $ | 67,426 | |||||||
| Group | Overview and Responsibilities | Activities | ||||||
| Board of Directors |
–
Oversight capacity
–
Ensure Key’s risks are managed in a manner that is not only effective and balanced, but also has a fiduciary duty to the shareholders
|
–
Understands Key's risk philosophy
–
Approves the risk appetite
–
Inquires about risk practices
–
Reviews the portfolio of risks
–
Compares the actual risks to the risk appetite
–
Is apprised of significant risks, both actual and emerging, and determines whether management is responding appropriately
–
Challenges management and ensures accountability
|
||||||
|
Board of Directors Audit Committee
(a)
|
–
Oversight of financial statement integrity, regulatory and legal requirements, independent auditors’ qualifications and independence, and the performance of the internal audit function and independent auditors
–
Financial reporting, legal matters, and fraud risk
|
–
Meets with management and approves significant policies relating to the risk areas overseen by the Audit Committee
–
Receives reports on enterprise risk
–
Meets bi-monthly
–
Convenes to discuss the content of our financial disclosures and quarterly earnings releases
|
||||||
|
Board of Directors Risk Committee
(a)
|
–
Assist the Board in oversight of strategies, policies, procedures, and practices relating to the assessment and management of enterprise-wide risk, including credit, market, liquidity, model, operational, compliance, reputation, and strategic risks
–
Assist the Board in overseeing risks related to capital adequacy, capital planning, and capital actions
|
–
Reviews and provides oversight of management’s activities related to the enterprise-wide risk management framework, which includes an annual review of the ERM Policy, including the Risk Appetite Statement, and management and ERM reports
–
Approves any material changes to the charter of the ERM Committee and significant policies relating to risk management, including corporate risk tolerances for major risk categories
|
||||||
| ERM Committee |
–
Chaired by the Chief Executive Officer and comprising other senior level executives
–
Manage risk and ensure that the corporate risk profile is managed in a manner consistent with our risk appetite
–
Oversees the ERM Program, which encompasses our risk philosophy, policy, framework, and governance structure for the management of risks across the entire company
|
–
Approves and manages the risk-adjusted capital framework we use to manage risks
|
||||||
| Disclosure Committee |
–
Includes representatives from each of the Three Lines of Defense
–
Meets quarterly to review recent internal and external events to determine whether all appropriate disclosures have been made in reports filed with the SEC
|
–
Convenes quarterly to discuss the content of our 10-Q and 10-K
|
||||||
| Tier 2 Risk Governance Committees |
–
Include attendees from each of the Three Lines of Defense
–
The First Line of Defense is the line of business primarily responsible to accept, own, proactively identify, monitor, and manage risk
–
The Second Line of Defense comprises Risk Management representatives who provide independent, centralized oversight over all risk categories by aggregating, analyzing, and reporting risk information
–
Risk Review, our internal audit function, provides the Third Line of Defense. Its role is to provide independent assessment and testing of the effectiveness of, appropriateness of, and adherence to KeyCorp’s risk management policies, practices, and controls
|
–
Supports the ERM Committee by identifying early warning events and trends, escalating emerging risks, and discussing forward-looking assessments
|
||||||
| Chief Risk Officer |
–
Ensure that relevant risk information is properly integrated into strategic and business decisions
–
Ensure appropriate ownership of risks
|
–
Provides input into performance and compensation decisions
–
Assesses aggregate enterprise risk
–
Monitors capabilities to manage critical risks
–
Executes appropriate Board and stakeholder reporting
|
||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||
| Three months ended December 31, | Three months ended December 31, | ||||||||||||||||||||||||||||
| in millions | High | Low | Mean | December 31, | High | Low | Mean | December 31, | |||||||||||||||||||||
| Trading account assets: | |||||||||||||||||||||||||||||
| Fixed income | $ | 2.9 | $ | 1.4 | $ | 2.1 | $ | 2.1 | $ | 1.2 | $ | .6 | $ | .9 | $ | .8 | |||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||
| Interest rate | $ | 1.0 | .2 | $ | .5 | $ | .5 | $ | .1 | .1 | $ | .1 | $ | .1 | |||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||
| Three months ended December 31, | Three months ended December 31, | ||||||||||||||||||||||||||||
| in millions | High | Low | Mean | December 31, | High | Low | Mean | December 31, | |||||||||||||||||||||
| Trading account assets: | |||||||||||||||||||||||||||||
| Fixed income | $ | 2.9 | $ | 1.4 | $ | 2.1 | $ | 2.1 | $ | 5.7 | $ | 3.2 | $ | 4.5 | $ | 4.3 | |||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||
| Interest rate | $ | .9 | $ | .2 | $ | .5 | $ | .5 | $ | 1.2 | $ | .2 | $ | .4 | $ | .7 | |||||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| Basis point change assumption (short-term rates) | -200 | +200 | -150 | +200 | ||||||||||||||||||||||
| Assumed floor in market rates (in basis points) | — | N/A | 25 | N/A | ||||||||||||||||||||||
| Tolerance level | -5.50 | % | -5.50 | % | -5.50 | % | -5.50 | % | ||||||||||||||||||
| Interest rate risk assessment | -2.52 | % | 4.98 | % | -2.47 | % | -1.45 | % | ||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||
| Weighted-Average | December 31, 2019 | |||||||||||||||||||||||||||||||
| dollars in millions |
Notional
Amount |
Fair
Value |
Maturity
(Years) |
Receive
Rate |
Pay
Rate |
Notional
Amount |
Fair
Value |
|||||||||||||||||||||||||
|
Receive fixed/pay variable — conventional A/LM
(a)
|
$ | 21,035 | $ | 632 | 2.4 | 1.8 | % | .2 | % | $ | 19,270 | $ | 312 | |||||||||||||||||||
| Receive fixed/pay variable — conventional debt | 7,787 | 415 | 3.8 | 2.1 | .1 | 8,189 | 240 | |||||||||||||||||||||||||
| Receive fixed/pay variable — forward A/LM | — | — | — | — | — | 3,400 | 32 | |||||||||||||||||||||||||
| Pay fixed/receive variable — conventional debt | 50 | (11) | 7.5 | .2 | 3.6 | 50 | (7) | |||||||||||||||||||||||||
| Pay fixed/receive variable — forward securities | 2,080 | 21 | 11.2 | .3 | 1.0 | — | — | |||||||||||||||||||||||||
| Total portfolio swaps | $ | 30,952 | $ | 1,057 |
(c)
|
3.4 | 1.8 | % | .2 | % | $ | 30,909 | $ | 577 |
(c)
|
|||||||||||||||||
|
Floors — conventional A/LM — purchased
(b)
|
$ | 5,000 | $ | 17 | .8 | — | — | $ | 4,200 | 149 | ||||||||||||||||||||||
|
Floors — conventional A/LM — sold
(b)
|
— | — | — | — | — | 3,900 | (15) | |||||||||||||||||||||||||
| Total floors | $ | 5,000 | $ | 17 | 1.0 | — | — | $ | 8,100 | 134 | ||||||||||||||||||||||
| December 31, 2020 |
Short-Term
Borrowings |
Long-Term
Deposits (a) |
Senior
Long-Term Debt |
Subordinated
Long-Term Debt |
Capital
Securities |
Preferred
Stock |
||||||||||||||
|
KEYCORP (THE PARENT COMPANY)
|
||||||||||||||||||||
|
Standard & Poor’s
|
A-2 | N/A | BBB+ | BBB | BB+ | BB+ | ||||||||||||||
|
Moody’s
|
P-2 | N/A | Baa1 | Baa1 | Baa2 | Baa3 | ||||||||||||||
|
Fitch
|
F1 | N/A | A- | BBB+ | BB+ | BB+ | ||||||||||||||
|
DBRS
|
R-1(low) | N/A | A | A (low) | A (low) | BBB | ||||||||||||||
|
KEYBANK
|
||||||||||||||||||||
|
Standard & Poor’s
|
A-2 | N/A | A- | BBB+ | N/A | N/A | ||||||||||||||
| Moody’s | P-2 | P-1/Aa3 | A3 | Baa1 | N/A | N/A | ||||||||||||||
|
Fitch
|
F1 | A | A- | BBB+ | N/A | N/A | ||||||||||||||
|
DBRS
|
R-1(middle) | A (high) | A (high) | A | N/A | N/A | ||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
|
December 31,
dollars in millions
|
Total
Allowance
|
Percent of
Allowance
to Total
Allowance
|
Percent of
Loan Type
to Total
Loans
|
Total
Allowance
|
Percent of
Allowance
to Total
Allowance
|
Percent of
Loan Type
to Total
Loans
|
Total
Allowance
|
Percent of
Allowance
to Total
Allowance
|
Percent of
Loan Type
to Total
Loans
|
||||||||||||||||||||||||||
| Commercial and industrial | $ | 678 | 41.7 | % | 52.3 | % | $ | 551 | 61.2 | % | 51.0 | % | $ | 532 | 60.2 | % | 51.1 | % | |||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||||||
| Commercial mortgage | 327 | 20.1 | 12.5 | 143 | 15.9 | 14.3 | 142 | 16.1 | 15.9 | ||||||||||||||||||||||||||
| Construction | 47 | 2.9 | 2.0 | 22 | 2.4 | 1.6 | 33 | 3.8 | 1.9 | ||||||||||||||||||||||||||
| Total commercial real estate loans | 374 | 23.0 | 14.5 | 165 | 18.3 | 15.9 | 175 | 19.9 | 17.8 | ||||||||||||||||||||||||||
| Commercial lease financing | 47 | 2.9 | 4.3 | 35 | 3.9 | 5.0 | 36 | 4.1 | 5.1 | ||||||||||||||||||||||||||
| Total commercial loans | 1,099 | 67.6 | 71.1 | 751 | 83.4 | 71.9 | 743 | 84.2 | 74.0 | ||||||||||||||||||||||||||
| Real estate — residential mortgage | 102 | 6.3 | 9.2 | 7 | .8 | 7.4 | 7 | 0.8 | 6.2 | ||||||||||||||||||||||||||
| Home equity loans | 171 | 10.5 | 9.2 | 31 | 3.5 | 10.9 | 35 | 3.9 | 12.4 | ||||||||||||||||||||||||||
| Consumer direct loans | 128 | 5.3 | 4.7 | 34 | 3.8 | 3.7 | 30 | 3.4 | 2.0 | ||||||||||||||||||||||||||
| Credit cards | 87 | 7.9 | 1.0 | 47 | 5.2 | 1.2 | 48 | 5.4 | 1.3 | ||||||||||||||||||||||||||
| Consumer indirect loans | 39 | 2.4 | 4.8 | 30 | 3.3 | 4.9 | 20 | 2.3 | 4.1 | ||||||||||||||||||||||||||
| Total consumer loans | 527 | 32.4 | 28.9 | 149 | 16.6 | 28.1 | 140 | 15.8 | 26.0 | ||||||||||||||||||||||||||
|
Total loans
(a)
|
$ | 1,626 | 100.0 | % | 100.0 | % | $ | 900 | 100.0 | % | 100.0 | % | $ | 883 | 100.0 | % | 100.0 | % | |||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||||||||||||||||||
|
Total
Allowance
|
Percent of
Allowance
to Total
Allowance
|
Percent of
Loan Type
to Total
Loans
|
Total
Allowance
|
Percent of
Allowance
to Total
Allowance
|
Percent of
Loan Type
to Total
Loans
|
||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 529 | 60.3 | % | 48.4 | % | $ | 508 | 59.2 | % | 46.2 | % | |||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||||||
| Commercial mortgage | 133 | 15.2 | 16.3 | 144 | 16.8 | 17.6 | |||||||||||||||||||||||||||||
| Construction | 30 | 3.4 | 2.3 | 22 | 2.6 | 2.7 | |||||||||||||||||||||||||||||
| Total commercial real estate loans | 163 | 18.6 | 18.6 | 166 | 19.4 | 20.3 | |||||||||||||||||||||||||||||
| Commercial lease financing | 43 | 4.9 | 5.6 | 42 | 4.9 | 5.4 | |||||||||||||||||||||||||||||
| Total commercial loans | 735 | 83.8 | 72.6 | 716 | 83.5 | 71.9 | |||||||||||||||||||||||||||||
| Real estate — residential mortgage | 7 | 0.8 | 6.3 | 17 | 2.0 | 6.5 | |||||||||||||||||||||||||||||
| Home equity loans | 43 | 4.9 | 13.9 | 54 | 6.3 | 14.7 | |||||||||||||||||||||||||||||
| Consumer direct loans | 28 | 3.2 | 2.1 | 24 | 2.8 | 2.1 | |||||||||||||||||||||||||||||
| Credit cards | 44 | 5.0 | 1.3 | 38 | 4.4 | 1.3 | |||||||||||||||||||||||||||||
| Consumer indirect loans | 20 | 2.3 | 3.8 | 9 | 1.0 | 3.5 | |||||||||||||||||||||||||||||
| Total consumer loans | 142 | 16.2 | 27.4 | 142 | 16.5 | 28.1 | |||||||||||||||||||||||||||||
|
Total loans
(a)
|
$ | 877 | 100.0 | % | 100.0 | % | $ | 858 | 100.0 | % | 100.0 | % | |||||||||||||||||||||||
| Year ended December 31, | |||||||||||||||||
| dollars in millions | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
| Commercial and industrial | $ | 317 | $ | 292 | $ | 122 | $ | 93 | $ | 107 | |||||||
| Real estate — commercial mortgage | 16 | 6 | 18 | 9 | (4) | ||||||||||||
| Real estate — construction | — | 5 | (2) | 1 | 7 | ||||||||||||
| Commercial lease financing | 34 | 21 | 5 | 8 | 9 | ||||||||||||
| Total commercial loans | 367 | 324 | 143 | 111 | 119 | ||||||||||||
| Real estate — residential mortgage | 1 | 1 | 1 | (1) | 3 | ||||||||||||
| Home equity loans | 4 | 11 | 10 | 15 | 16 | ||||||||||||
| Consumer direct loans | 30 | 34 | 29 | 28 | 22 | ||||||||||||
| Credit cards | 31 | 37 | 37 | 39 | 31 | ||||||||||||
| Consumer indirect loans | 10 | 17 | 14 | 16 | 14 | ||||||||||||
| Total consumer loans | 76 | 100 | 91 | 97 | 86 | ||||||||||||
| Total net loan charge-offs | $ | 443 | $ | 424 | $ | 234 | $ | 208 | $ | 205 | |||||||
| Net loan charge-offs to average loans | .43 | % | .46 | % | .26 | % | .24 | % | .29 | % | |||||||
|
Net loan charge-offs from discontinued operations — education lending business
|
$ | — | $ | 7 | $ | 10 | $ | 18 | $ | 17 | |||||||
|
Year ended December 31,
dollars in millions
|
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
| Average loans outstanding | $ | 102,689 | $ | 91,511 | $ | 88,338 | $ | 86,365 | $ | 71,148 | |||||||
| Allowance for loan and lease looses at the end of the prior period | $ | 900 | $ | 883 | $ | 877 | $ | 858 | $ | 796 | |||||||
|
Cumulative effect from change in accounting principle
(a)
|
204 | — | — | — | — | ||||||||||||
| Allowance for loan and lease losses at beginning of period | 1,104 | 883 | 877 | 858 | 796 | ||||||||||||
| Loans charged off: | |||||||||||||||||
| Commercial and industrial | 351 | 319 | 159 | 133 | 118 | ||||||||||||
| Real estate — commercial mortgage | 19 | 8 | 21 | 11 | 5 | ||||||||||||
| Real estate — construction | — | 5 | — | 2 | 9 | ||||||||||||
|
Total commercial real estate loans
(c)
|
19 | 13 | 21 | 13 | 14 | ||||||||||||
| Commercial lease financing | 35 | 26 | 10 | 14 | 12 | ||||||||||||
|
Total commercial loans
(d)
|
405 | 358 | 190 | 160 | 144 | ||||||||||||
| Real estate — residential mortgage | 2 | 3 | 3 | 3 | 4 | ||||||||||||
| Home equity loans | 11 | 19 | 21 | 30 | 30 | ||||||||||||
| Consumer direct loans | 37 | 41 | 36 | 34 | 27 | ||||||||||||
| Credit cards | 39 | 44 | 44 | 44 | 35 | ||||||||||||
| Consumer indirect loans | 28 | 34 | 30 | 31 | 21 | ||||||||||||
| Total consumer loans | 117 | 141 | 134 | 142 | 117 | ||||||||||||
| Total loans charged off | 522 | 499 | 324 | 302 | 261 | ||||||||||||
| Recoveries: | |||||||||||||||||
| Commercial and industrial | 34 | 27 | 37 | 40 | 11 | ||||||||||||
| Real estate — commercial mortgage | 3 | 2 | 3 | 2 | 9 | ||||||||||||
| Real estate — construction | — | — | 2 | 1 | 2 | ||||||||||||
|
Total commercial real estate loans
(c)
|
3 | 2 | 5 | 3 | 11 | ||||||||||||
| Commercial lease financing | 1 | 5 | 5 | 6 | 3 | ||||||||||||
|
Total commercial loans
(d)
|
38 | 34 | 47 | 49 | 25 | ||||||||||||
| Real estate — residential mortgage | 1 | 2 | 2 | 4 | 1 | ||||||||||||
| Home equity loans | 7 | 8 | 11 | 15 | 14 | ||||||||||||
| Consumer direct loans | 7 | 7 | 7 | 6 | 5 | ||||||||||||
| Credit cards | 8 | 7 | 7 | 5 | 4 | ||||||||||||
| Consumer indirect loans | 18 | 17 | 16 | 15 | 7 | ||||||||||||
| Total consumer loans | 41 | 41 | 43 | 45 | 31 | ||||||||||||
| Total recoveries | 79 | 75 | 90 | 94 | 56 | ||||||||||||
| Net loan charge-offs | (443) | (424) | (234) | (208) | (205) | ||||||||||||
| Provision (credit) for loan and lease losses | 965 | 441 | 240 | 227 | 267 | ||||||||||||
| Foreign currency translation adjustment | — | — | — | — | — | ||||||||||||
| Allowance for loan and lease losses at end of year | $ | 1,626 | $ | 900 | $ | 883 | $ | 877 | $ | 858 | |||||||
| Liability for credit losses on lending-related commitments at the end of the prior period | $ | 68 | $ | 64 | $ | 57 | $ | 55 | $ | 56 | |||||||
| Liability for credit losses on contingent guarantees at the end of the prior period | 7 | — | — | — | — | ||||||||||||
|
Cumulative effect from change in accounting principle
(a)(b)
|
66 | — | — | — | — | ||||||||||||
| Liability for credit losses on lending-related commitments at beginning of the year | 141 | 64 | 57 | 55 | 56 | ||||||||||||
| Provision (credit) for losses on lending-related commitments | 56 | 4 | 6 | 2 | (1) | ||||||||||||
|
Liability for credit losses on lending-related commitments at end of the year
(e)
|
$ | 197 | $ | 68 | $ | 63 | $ | 57 | $ | 55 | |||||||
| Total allowance for credit losses at end of the year | $ | 1,823 | $ | 968 | $ | 946 | $ | 934 | $ | 913 | |||||||
| Net loan charge-offs to average total loans | .43 | % | .46 | % | .26 | % | .24 | % | .29 | % | |||||||
| Allowance for loan and lease losses to period-end loans | 1.61 | .95 | .99 | 1.01 | 1.00 | ||||||||||||
| Allowance for credit losses to period-end loans | 1.80 | 1.02 | 1.06 | 1.08 | 1.06 | ||||||||||||
| Allowance for loan and lease losses to nonperforming loans | 207.1 | 156.0 | 162.9 | 174.4 | 137.3 | ||||||||||||
| Allowance for credit losses to nonperforming loans | 232.2 | 167.8 | 174.5 | 185.7 | 146.1 | ||||||||||||
| Discontinued operations — education lending business: | |||||||||||||||||
| Loans charged off | $ | 5 | $ | 12 | $ | 15 | $ | 26 | $ | 28 | |||||||
| Recoveries | 5 | 5 | 5 | 8 | 11 | ||||||||||||
| Net loan charge-offs | $ | — | $ | (7) | $ | (10) | $ | (18) | $ | (17) | |||||||
| December 31, | |||||||||||||||||
| dollars in millions | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
| Commercial and industrial | $ | 385 | $ | 264 | $ | 152 | $ | 153 | $ | 297 | |||||||
| Real estate — commercial mortgage | 104 | 83 | 81 | 30 | 26 | ||||||||||||
| Real estate — construction | — | 2 | 2 | 2 | 3 | ||||||||||||
|
Total commercial real estate loans
(a)
|
104 | 85 | 83 | 32 | 29 | ||||||||||||
| Commercial lease financing | 8 | 6 | 9 | 6 | 8 | ||||||||||||
|
Total commercial loans
(b)
|
497 | 355 | 244 | 191 | 334 | ||||||||||||
| Real estate — residential mortgage | 110 | 48 | 62 | 58 | 56 | ||||||||||||
| Home equity loans | 154 | 145 | 210 | 229 | 223 | ||||||||||||
| Consumer direct loans | 5 | 4 | 4 | 4 | 6 | ||||||||||||
| Credit cards | 2 | 3 | 2 | 2 | 2 | ||||||||||||
| Consumer indirect loans | 17 | 22 | 20 | 19 | 4 | ||||||||||||
| Total consumer loans | 288 | 222 | 298 | 312 | 291 | ||||||||||||
| Total nonperforming loans | 785 | 577 | 542 | 503 | 625 | ||||||||||||
| Nonperforming loans held for sale | 49 | 94 | — | — | — | ||||||||||||
| OREO | 100 | 35 | 35 | 31 | 51 | ||||||||||||
| Other nonperforming assets | 3 | 9 | — | — | — | ||||||||||||
| Total nonperforming assets | $ | 937 | $ | 715 | $ | 577 | $ | 534 | $ | 676 | |||||||
| Accruing loans past due 90 days or more | $ | 86 | $ | 101 | $ | 112 | $ | 89 | $ | 87 | |||||||
| Accruing loans past due 30 through 89 days | 241 | 389 | 312 | 359 | 404 | ||||||||||||
|
Restructured loans — accruing and nonaccruing
(c)
|
363 | 347 | 399 | 317 | 280 | ||||||||||||
|
Restructured loans included in nonperforming loans
(c)
|
229 | 183 | 247 | 189 | 141 | ||||||||||||
| Nonperforming assets from discontinued operations — education lending business | 5 | 7 | 8 | 7 | 5 | ||||||||||||
| Nonperforming loans to period-end portfolio loans | .78 | % | .61 | % | .61 | % | .58 | % | .73 | % | |||||||
|
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
(c)
|
.92 | .75 | .64 | .62 | .79 | ||||||||||||
| 2020 Quarters | ||||||||||||||||||||
| in millions | 2020 | Fourth | Third | Second | First | 2019 | ||||||||||||||
| Balance at beginning of period | $ | 577 | $ | 834 | $ | 760 | $ | 632 | $ | 577 | $ | 542 | ||||||||
|
Loans placed on nonaccrual status
(a)
|
1,199 | 300 | 387 | 293 | 219 | 924 | ||||||||||||||
| Charge-offs | (521) | (160) | (150) | (111) | (100) | (380) | ||||||||||||||
| Loans sold | (24) | (9) | (6) | (5) | (4) | (57) | ||||||||||||||
| Payments | (226) | (83) | (83) | (29) | (31) | (141) | ||||||||||||||
| Transfers to OREO | (6) | (3) | — | — | (3) | (19) | ||||||||||||||
| Transfers to nonperforming loans held for sale | — | — | — | — | — | (125) | ||||||||||||||
| Transfers to other nonperforming assets | — | — | — | — | — | (13) | ||||||||||||||
| Loans returned to accrual status | (214) | (94) | (74) | (20) | (26) | (154) | ||||||||||||||
| Balance at end of period | $ | 785 | $ | 785 | $ | 834 | $ | 760 | $ | 632 | $ | 577 | ||||||||
|
Year ended December 31,
|
||||||||||||||||||||
|
dollars in millions
|
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
| Tangible common equity to tangible assets at period end | ||||||||||||||||||||
| Key shareholders’ equity (GAAP) | $ | 17,981 | $ | 17,038 | $ | 15,595 | $ | 15,023 | $ | 15,240 | ||||||||||
| Less: |
Intangible assets
(a)
|
2,848 | 2,910 | 2,818 | 2,928 | 2,788 | ||||||||||||||
|
Preferred Stock
(b)
|
1,856 | 1,856 | 1,421 | 1,009 | 1,640 | |||||||||||||||
| Tangible common equity (non-GAAP) | $ | 13,277 | $ | 12,272 | $ | 11,356 | $ | 11,086 | $ | 10,812 | ||||||||||
| Total assets (GAAP) | $ | 170,336 | $ | 144,988 | $ | 139,613 | $ | 137,698 | $ | 136,453 | ||||||||||
| Less: |
Intangible assets
(a)
|
2,848 | 2,910 | 2,818 | 2,928 | 2,788 | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 167,488 | $ | 142,078 | $ | 136,795 | $ | 134,770 | $ | 133,665 | ||||||||||
| Tangible common equity to tangible assets ratio (non-GAAP) | 7.93 | % | 8.64 | % | 8.30 | % | 8.23 | % | 8.09 | % | ||||||||||
| Average tangible common equity | ||||||||||||||||||||
| Average Key shareholders’ equity (GAAP) | $ | 17,636 | $ | 16,636 | $ | 15,131 | $ | 15,224 | $ | 12,647 | ||||||||||
| Less: |
Intangible assets (average)
(c)
|
2,878 | 2,909 | 2,869 | 2,837 | 1,825 | ||||||||||||||
| Preferred Stock (average) | 1,900 | 1,755 | 1,205 | 1,137 | 627 | |||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 12,858 | $ | 11,972 | $ | 11,057 | $ | 11,250 | $ | 10,195 | ||||||||||
| Return on average tangible common equity from continuing operations | ||||||||||||||||||||
|
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)
|
$ | 1,223 | $ | 1,611 | $ | 1,793 | $ | 1,219 | $ | 753 | ||||||||||
| Average tangible common equity (non-GAAP) | $ | 12,858 | $ | 11,972 | $ | 11,057 | $ | 11,250 | $ | 10,195 | ||||||||||
|
Return on average tangible common equity from continuing operations (non-GAAP)
|
9.51 | % | 13.46 | % | 16.22 | % | 10.84 | % | 7.39 | % | ||||||||||
| Return on average tangible common equity consolidated | ||||||||||||||||||||
| Net income (loss) attributable to Key common shareholders (GAAP) | $ | 1,237 | $ | 1,620 | $ | 1,800 | $ | 1,226 | $ | 754 | ||||||||||
| Average tangible common equity (non-GAAP) | 12,858 | 11,972 | 11,057 | 11,250 | 10,195 | |||||||||||||||
| Return on average tangible common equity consolidated (non-GAAP) | 9.62 | % | 13.53 | % | 16.28 | % | 10.90 | % | 7.40 | |||||||||||
|
Year ended December 31,
|
||||||||||||||||||||
|
dollars in millions
|
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
| Cash efficiency ratio | ||||||||||||||||||||
| Noninterest expense (GAAP) | $ | 4,109 | $ | 3,901 | $ | 3,975 | $ | 4,098 | $ | 3,756 | ||||||||||
| Less: | Intangible asset amortization (GAAP) | 65 | 89 | 99 | 95 | 55 | ||||||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 4,044 | $ | 3,812 | $ | 3,876 | $ | 4,003 | $ | 3,701 | ||||||||||
| Net interest income (GAAP) | $ | 4,034 | $ | 3,909 | $ | 3,909 | $ | 3,777 | $ | 2,919 | ||||||||||
| Plus: | TE adjustment | 29 | 32 | 31 | 53 | 34 | ||||||||||||||
| Noninterest income (GAAP) | 2,652 | 2,459 | 2,515 | 2,478 | 2,071 | |||||||||||||||
| Total TE revenue (non-GAAP) | $ | 6,715 | $ | 6,400 | $ | 6,455 | $ | 6,308 | $ | 5,024 | ||||||||||
| Cash efficiency ratio (non-GAAP) | 60.2 | % | 59.6 | % | 60.0 | % | 63.5 | % | 73.7 | % | ||||||||||
| 2020 Quarters | 2019 Quarters | |||||||||||||||||||||||||
| dollars in millions, except per share amounts |
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
||||||||||||||||||
| FOR THE PERIOD | ||||||||||||||||||||||||||
| Interest income | $ | 1,125 | $ | 1,119 | $ | 1,190 | $ | 1,251 | $ | 1,285 | $ | 1,317 | $ | 1,329 | $ | 1,304 | ||||||||||
| Interest expense | 90 | 119 | 172 | 270 | 306 | 345 | 348 | 327 | ||||||||||||||||||
| Net interest income | 1,035 | 1,000 | 1,018 | 981 | 979 | 972 | 981 | 977 | ||||||||||||||||||
| Provision for credit losses | 20 | 160 | 482 | 359 | 109 | 200 | 74 | 62 | ||||||||||||||||||
| Noninterest income | 802 | 681 | 692 | 477 | 651 | 650 | 622 | 536 | ||||||||||||||||||
| Noninterest expense | 1,128 | 1,037 | 1,013 | 931 | 980 | 939 | 1,019 | 963 | ||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 689 | 484 | 215 | 168 | 541 | 483 | 510 | 488 | ||||||||||||||||||
| Income (loss) from continuing operations attributable to Key | 575 | 424 | 185 | 145 | 466 | 413 | 423 | 406 | ||||||||||||||||||
| Income (loss) from discontinued operations, net of taxes | 7 | 4 | 2 | 1 | 3 | 3 | 2 | 1 | ||||||||||||||||||
| Net income (loss) attributable to Key | 582 | 428 | 187 | 146 | 469 | 416 | 425 | 407 | ||||||||||||||||||
|
Income (loss) from continuing operations attributable to Key common shareholders
|
549 | 397 | 159 | 118 | 439 | 383 | 403 | 386 | ||||||||||||||||||
| Income (loss) from discontinued operations, net of taxes | 7 | 4 | 2 | 1 | 3 | 3 | 2 | 1 | ||||||||||||||||||
| Net income (loss) attributable to Key common shareholders | 556 | 401 | 161 | 119 | 442 | 386 | 405 | 387 | ||||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||||||
|
Income (loss) from continuing operations attributable to Key common shareholders
|
$ | .57 | $ | .41 | $ | .16 | $ | .12 | $ | .45 | $ | .39 | $ | .40 | $ | .38 | ||||||||||
| Income (loss) from discontinued operations, net of taxes | .01 | — | — | — | — | — | — | — | ||||||||||||||||||
|
Net income (loss) attributable to Key common shareholders
(a)
|
.57 | .41 | .17 | .12 | .45 | .39 | .40 | .38 | ||||||||||||||||||
|
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
|
.56 | .41 | .16 | .12 | .45 | .38 | .40 | .38 | ||||||||||||||||||
|
Income (loss) from discontinued operations, net of taxes — assuming dilution
|
.01 | — | — | — | — | — | — | — | ||||||||||||||||||
|
Net income (loss) attributable to Key common shareholders — assuming dilution
(a)
|
.57 | .41 | .17 | .12 | .45 | .39 | .40 | .38 | ||||||||||||||||||
| Cash dividends paid | .185 | .185 | .185 | .185 | .185 | .185 | .170 | .170 | ||||||||||||||||||
| Book value at period end | 16.53 | 16.25 | 16.07 | 15.95 | 15.54 | 15.44 | 15.07 | 14.31 | ||||||||||||||||||
| Tangible book value at period end | 13.61 | 13.32 | 13.12 | 12.98 | 12.56 | 12.48 | 12.12 | 11.55 | ||||||||||||||||||
| Weighted-average Common Shares outstanding (000) | 967,987 | 967,804 | 967,147 | 967,446 | 973,450 | 988,319 | 999,163 | 1,006,717 | ||||||||||||||||||
|
Weighted-average Common Shares and potential Common Shares outstanding (000)
(b)
|
976,460 | 973,988 | 972,141 | 976,110 | 984,361 | 998,328 | 1,007,964 | 1,016,504 | ||||||||||||||||||
| AT PERIOD END | ||||||||||||||||||||||||||
| Loans | $ | 101,185 | $ | 103,081 | $ | 106,159 | $ | 103,198 | $ | 94,646 | $ | 92,760 | $ | 91,937 | $ | 90,178 | ||||||||||
| Earning assets | 155,469 | 155,585 | 156,177 | 141,333 | 130,807 | 132,160 | 130,213 | 127,296 | ||||||||||||||||||
| Total assets | 170,336 | 170,540 | 171,192 | 156,197 | 144,988 | 146,691 | 144,545 | 141,515 | ||||||||||||||||||
| Deposits | 135,282 | 136,746 | 135,513 | 115,304 | 111,870 | 111,649 | 109,946 | 108,175 | ||||||||||||||||||
| Long-term debt | 13,709 | 12,685 | 13,734 | 13,732 | 12,448 | 14,470 | 14,312 | 14,168 | ||||||||||||||||||
| Key common shareholders’ equity | 16,081 | 15,822 | 15,642 | 15,511 | 15,138 | 15,216 | 15,069 | 14,474 | ||||||||||||||||||
| Key shareholders’ equity | 17,981 | 17,722 | 17,542 | 17,411 | 17,038 | 17,116 | 16,969 | 15,924 | ||||||||||||||||||
| PERFORMANCE RATIOS — FROM CONTINUING OPERATIONS | ||||||||||||||||||||||||||
| Return on average total assets | 1.35 | % | 1.00 | % | .45 | % | .40 | % | 1.27 | % | 1.14 | % | 1.19 | % | 1.18 | % | ||||||||||
| Return on average common equity | 13.65 | 9.98 | 4.05 | 3.10 | 11.40 | 9.99 | 10.94 | 10.98 | ||||||||||||||||||
|
Return on average tangible common equity
(c)
|
16.61 | 12.19 | 4.96 | 3.82 | 14.09 | 12.38 | 13.69 | 13.69 | ||||||||||||||||||
| Net interest margin (TE) | 2.70 | 2.62 | 2.76 | 3.01 | 2.98 | 3.00 | 3.06 | 3.13 | ||||||||||||||||||
|
Cash efficiency ratio
(c)
|
60.3 | 60.6 | 57.9 | 62.3 | 58.7 | 56.0 | 61.9 | 61.9 | ||||||||||||||||||
| PERFORMANCE RATIOS — FROM CONSOLIDATED OPERATIONS | ||||||||||||||||||||||||||
| Return on average total assets | 1.36 | % | 1.00 | % | .46 | % | .40 | % | 1.27 | % | 1.14 | % | 1.19 | % | 1.17 | % | ||||||||||
| Return on average common equity | 13.82 | 10.08 | 4.10 | 3.12 | 11.48 | 10.07 | 11.00 | 11.01 | ||||||||||||||||||
|
Return on average tangible common equity
(c)
|
16.82 | 12.31 | 5.02 | 3.86 | 14.19 | 12.48 | 13.75 | 13.72 | ||||||||||||||||||
| Net interest margin (TE) | 2.69 | 2.62 | 2.76 | 3.00 | 2.97 | 2.98 | 3.05 | 3.12 | ||||||||||||||||||
|
Loan to deposit
(d)
|
76.5 | 77.2 | 80.4 | 80.4 | 86.6 | 85.3 | 86.1 | 85.1 | ||||||||||||||||||
| CAPITAL RATIOS AT PERIOD END | ||||||||||||||||||||||||||
| Key shareholders’ equity to assets | 10.56 | % | 10.39 | % | 10.25 | % | 11.15 | % | 11.75 | % | 11.67 | % | 11.74 | % | 11.25 | % | ||||||||||
| Key common shareholders’ equity to assets | 9.47 | 9.30 | 9.16 | 9.96 | 10.47 | 10.40 | 10.46 | 10.25 | ||||||||||||||||||
|
Tangible common equity to tangible assets
(c)
|
7.93 | 7.76 | 7.61 | 8.26 | 8.64 | 8.58 | 8.59 | 8.43 | ||||||||||||||||||
| Common Equity Tier 1 | 9.73 | 9.47 | 9.09 | 8.87 | 9.44 | 9.48 | 9.57 | 9.81 | ||||||||||||||||||
| Tier 1 risk-based capital | 11.11 | 10.86 | 10.45 | 10.21 | 10.86 | 10.91 | 11.01 | 10.94 | ||||||||||||||||||
| Total risk-based capital | 13.40 | 13.26 | 12.80 | 12.22 | 12.79 | 12.90 | 13.03 | 12.98 | ||||||||||||||||||
| Leverage | 8.94 | 8.72 | 8.80 | 9.78 | 9.88 | 9.93 | 10.00 | 9.89 | ||||||||||||||||||
| TRUST ASSETS | ||||||||||||||||||||||||||
| Assets under management | $ | 44,140 | $ | 41,312 | $ | 39,722 | $ | 36,189 | $ | 40,833 | $ | 39,416 | $ | 38,942 | $ | 38,742 | ||||||||||
| OTHER DATA | ||||||||||||||||||||||||||
| Average full-time-equivalent employees | 17,029 | 17,097 | 16,646 | 16,529 | 16,537 | 16,898 | 17,206 | 17,554 | ||||||||||||||||||
| Branches | 1,073 | 1,077 | 1,077 | 1,082 | 1,098 | 1,101 | 1,102 | 1,158 | ||||||||||||||||||
| 2020 Quarters | 2019 Quarters | ||||||||||||||||||||||||||||
| dollars in millions |
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
|||||||||||||||||||||
| Tangible common equity to tangible assets at period end | |||||||||||||||||||||||||||||
| Key shareholders’ equity (GAAP) | $ | 17,981 | $ | 17,722 | $ | 17,542 | $ | 17,411 | $ | 17,038 | $ | 17,116 | $ | 16,969 | $ | 15,924 | |||||||||||||
| Less: |
Intangible assets
(a)
|
2,848 | 2,862 | 2,877 | 2,894 | 2,910 | 2,928 | 2,952 | 2,804 | ||||||||||||||||||||
|
Preferred Stock
(b)
|
1,856 | 1,856 | 1,856 | 1,856 | 1,856 | 1,856 | 1,856 | 1,421 | |||||||||||||||||||||
| Tangible common equity (non-GAAP) | $ | 13,277 | $ | 13,004 | $ | 12,809 | $ | 12,661 | $ | 12,272 | $ | 12,332 | $ | 12,161 | $ | 11,699 | |||||||||||||
| Total assets (GAAP) | $ | 170,336 | $ | 170,540 | $ | 171,192 | $ | 156,197 | $ | 144,988 | $ | 146,691 | $ | 144,545 | $ | 141,515 | |||||||||||||
| Less: |
Intangible assets
(a)
|
2,848 | 2,862 | 2,877 | 2,894 | 2,910 | 2,928 | 2,952 | 2,804 | ||||||||||||||||||||
| Tangible assets (non-GAAP) | $ | 167,488 | $ | 167,678 | $ | 168,315 | $ | 153,303 | $ | 142,078 | $ | 143,763 | $ | 141,593 | $ | 138,711 | |||||||||||||
| Tangible common equity to tangible assets ratio (non-GAAP) | 7.93 | % | 7.76 | % | 7.61 | % | 8.26 | % | 8.64 | % | 8.58 | % | 8.59 | % | 8.43 | % | |||||||||||||
| Average tangible common equity | |||||||||||||||||||||||||||||
| Average Key shareholders’ equity (GAAP) | $ | 17,905 | $ | 17,730 | $ | 17,688 | $ | 17,216 | $ | 17,178 | $ | 17,113 | $ | 16,531 | $ | 15,702 | |||||||||||||
| Less: |
Intangible assets (average)
(c)
|
2,855 | 2,870 | 2,886 | 2,902 | 2,919 | 2,942 | 2,959 | 2,813 | ||||||||||||||||||||
| Preferred Stock (average) | 1,900 | 1,900 | 1,900 | 1,900 | 1,900 | 1,900 | 1,762 | 1,450 | |||||||||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 13,150 | $ | 12,960 | $ | 12,902 | $ | 12,414 | $ | 12,359 | $ | 12,271 | $ | 11,810 | $ | 11,439 | |||||||||||||
| Return on average tangible common equity from continuing operations | |||||||||||||||||||||||||||||
|
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)
|
$ | 549 | $ | 397 | $ | 159 | $ | 118 | $ | 439 | $ | 383 | $ | 403 | $ | 386 | |||||||||||||
| Average tangible common equity (non-GAAP) | 13,150 | 12,960 | 12,902 | 12,414 | 12,359 | 12,271 | 11,810 | 11,439 | |||||||||||||||||||||
|
Return on average tangible common equity from continuing operations (non-GAAP)
|
16.61 | % | 12.19 | % | 4.96 | % | 3.82 | % | 14.09 | % | 12.38 | % | 13.69 | % | 13.69 | % | |||||||||||||
| Return on average tangible common equity consolidated | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Key common shareholders (GAAP) | $ | 556 | $ | 401 | $ | 161 | $ | 119 | $ | 442 | $ | 386 | $ | 405 | $ | 387 | |||||||||||||
| Average tangible common equity (non-GAAP) | 13,150 | 12,960 | 12,902 | 12,414 | 12,359 | 12,271 | 11,810 | 11,439 | |||||||||||||||||||||
| Return on average tangible common equity consolidated (non-GAAP) | 16.82 | % | 12.31 | % | 5.02 | % | 3.86 | % | 14.19 | % | 14.19 | % | 14.19 | % | 14.19 | % | |||||||||||||
| Cash efficiency ratio | |||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | $ | 1,128 | $ | 1,037 | $ | 1,013 | $ | 931 | $ | 980 | $ | 939 | $ | 1,019 | $ | 963 | |||||||||||||
| Less: | Intangible asset amortization (GAAP) | 15 | 15 | 18 | 17 | 19 | 26 | 22 | 22 | ||||||||||||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 1,113 | $ | 1,022 | $ | 995 | $ | 914 | $ | 961 | $ | 913 | $ | 997 | $ | 941 | |||||||||||||
| Net interest income (GAAP) | $ | 1,035 | $ | 1,000 | $ | 1,018 | $ | 981 | $ | 979 | $ | 972 | $ | 981 | $ | 977 | |||||||||||||
| Plus: | TE adjustment | 8 | 6 | 7 | 8 | 8 | 8 | 8 | 8 | ||||||||||||||||||||
| Noninterest income (GAAP) | 802 | 681 | 692 | 477 | 651 | 650 | 622 | 536 | |||||||||||||||||||||
| Total TE revenue (non-GAAP) | $ | 1,845 | $ | 1,687 | $ | 1,717 | $ | 1,466 | $ | 1,638 | $ | 1,630 | $ | 1,611 | $ | 1,521 | |||||||||||||
| Cash efficiency ratio (non-GAAP) | 60.3 | % | 60.6 | % | 57.9 | % | 62.3 | % | 58.7 | % | 56.0 | % | 61.9 | % | 61.9 | % | |||||||||||||
| Standard | Required Adoption | Description |
Effect on Financial Statements or
Other Significant Matters |
||||||||
|
ASU 2020-06,
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) |
January 1, 2022
Early adoption is permitted. |
The ASU simplifies the accounting for convertible debt instruments by eliminating the
legacy accounting models for convertible instruments with beneficial conversion features or cash conversion features. The guidance also amends the guidance used to determine if a freestanding financial instrument or an embedded feature qualifies for a scope exception from derivative accounting. For freestanding financial instruments and embedded features that have all the characteristics of a derivative instrument and are potentially settled in an entity’s own stock, the guidance simplifies the settlement assessment that entities are required to perform. Also, the Update now requires the use of the if-converted method for all convertible instruments and includes the effect of potential share settlement in diluted EPS if the effect is more dilutive. The new guidance also makes clarifications to the EPS calculation. Further, the ASU expands disclosure requirements. The guidance should be applied on a modified retrospective or retrospective basis. |
The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. | ||||||||
| December 31, 2020 |
Short- and Long-
Term Commercial
Total
(a)
|
Foreign Exchange
and Derivatives
with Collateral
(b)
|
Net
Exposure
|
||||||||
| in millions | |||||||||||
| France: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | — | — | ||||||||
| Non-sovereign non-financial institutions | $ | 1 | — | $ | 1 | ||||||
| Total | 1 | — | 1 | ||||||||
| Germany: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | — | — | ||||||||
| Non-sovereign non-financial institutions | 33 | — | 33 | ||||||||
| Total | 33 | — | 33 | ||||||||
| Italy: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | — | — | ||||||||
| Non-sovereign non-financial institutions | — | — | — | ||||||||
| Total | — | — | — | ||||||||
| Luxembourg: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | — | — | ||||||||
| Non-sovereign non-financial institutions | — | — | — | ||||||||
| Total | — | — | — | ||||||||
| Switzerland: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | 1 | 1 | ||||||||
| Non-sovereign non-financial institutions | — | — | — | ||||||||
| Total | — | 1 | 1 | ||||||||
| United Kingdom: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | $ | 406 | 406 | |||||||
| Non-sovereign non-financial institutions | — | — | — | ||||||||
| Total | — | 406 | 406 | ||||||||
| Total Europe: | |||||||||||
| Sovereigns | — | — | — | ||||||||
| Non-sovereign financial institutions | — | 407 | 407 | ||||||||
| Non-sovereign non-financial institutions | 34 | — | 34 | ||||||||
| Total | $ | 34 | $ | 407 | $ | 441 | |||||
| Page Number | |||||
|
||
| Cleveland, Ohio | ||
| February 22, 2021 | ||
| Allowance for Loan and Lease Losses | ||||||||
| Description of the matter |
On January 1, 2020, KeyCorp adopted Topic 326, which resulted in an increase to the ALLL from continuing operations of $204 million. KeyCorp’s loan and lease portfolio totaled $101.2 billion as of December 31, 2020 and the associated ALLL was $1.6 billion. As discussed in Note 1 and 5 of the financial statements, the ALLL represents management’s current estimate of lifetime credit losses inherent in the loan portfolio at the balance sheet date. Management estimates the ALLL using relevant available information, from internal and external sources, relating to past events, current portfolio specific and economic conditions, and reasonable and supportable forecasts. The ALLL is the sum of (i) asset specific / individual loan reserves; (ii) quantitative (formulaic or pooled) reserves; and (iii) qualitative (judgmental) reserves. Management estimates the quantitative reserves using probability of default / loss given default / exposure at default models (“loss forecasting models”), as well as other estimation methods for smaller loan portfolios. The ALLL also considers qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be reflected in quantitatively derived results, and other relevant factors to reflect management’s best estimate of current expected credit losses.
Auditing management’s ALLL was complex due to the loss forecasting models used to compute the quantitative reserve and involves a high degree of subjectivity and judgment in evaluating management’s determination of the economic forecast and qualitative factor adjustments to the ALLL described above.
|
|||||||
| How we addressed the matter in our audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over KeyCorp’s ALLL process, including controls over the appropriateness of the ALLL methodology, the development, operation and monitoring of loss forecasting models, the reliability and accuracy of data used in developing the ALLL estimate, and management’s review and approval process over the economic forecast, qualitative adjustments and overall ALLL results.
With the assistance of EY specialists we tested management’s loss forecasting models including evaluating the conceptual soundness of model methodology, assessing model performance and governance, testing key modeling assumptions, including the reasonable and supportable forecast period, and independently recalculating model output. We also compared the underlying economic forecast data used to estimate the quantitative reserve to external sources to determine whether it was complete and accurate.
To test the qualitative factor adjustments, among other procedures, we assessed management’s methodology and considered whether relevant risks were reflected in the models and whether adjustments to the model output were appropriate. We tested the completeness, accuracy and relevance of the underlying data used to estimate the qualitative adjustments. We evaluated whether qualitative adjustments were reasonable based on changes in economic conditions, the loan portfolio, management’s policies and procedures, and lending personnel. For example, we evaluated the reasonableness of qualitative adjustments (or lack thereof) for concentrations of credit by independently comparing to loan portfolio information. We also assessed whether qualitative adjustments were consistent with publicly available information (e.g. macroeconomic data). Further, we performed an independent search for the existence of new or contrary information relating to risks impacting the qualitative factor adjustments to validate that management’s considerations are appropriate. Additionally, we evaluated whether the overall ALLL, inclusive of qualitative factor adjustments, appropriately reflects losses expected in the loan and lease portfolio by comparing to peer bank data.
|
|||||||
|
||
| We have served as KeyCorp’s auditor since 1994. | ||
| Cleveland, Ohio | ||
| February 22, 2021 | ||
| December 31, | ||||||||
| in millions, except per share data | 2020 | 2019 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ |
|
$ |
|
||||
| Short-term investments |
|
|
||||||
| Trading account assets |
|
|
||||||
| Securities available for sale |
|
|
||||||
|
Held-to-maturity securities (fair value: $
|
|
|
||||||
| Other investments |
|
|
||||||
|
Loans, net of unearned income of $
|
|
|
||||||
| Allowance for loan and lease losses |
(
|
(
|
||||||
| Net loans |
|
|
||||||
|
Loans held for sale
(a)
|
|
|
||||||
| Premises and equipment |
|
|
||||||
| Goodwill |
|
|
||||||
| Other intangible assets |
|
|
||||||
| Corporate-owned life insurance |
|
|
||||||
| Accrued income and other assets |
|
|
||||||
| Discontinued assets |
|
|
||||||
| Total assets | $ |
|
$ |
|
||||
| LIABILITIES | ||||||||
| Deposits in domestic offices: | ||||||||
| NOW and money market deposit accounts | $ |
|
$ |
|
||||
| Savings deposits |
|
|
||||||
|
Certificates of deposit ($
|
|
|
||||||
| Other time deposits |
|
|
||||||
| Total interest-bearing deposits |
|
|
||||||
| Noninterest-bearing deposits |
|
|
||||||
| Total deposits |
|
|
||||||
| Federal funds purchased and securities sold under repurchase agreements |
|
|
||||||
| Bank notes and other short-term borrowings |
|
|
||||||
| Accrued expense and other liabilities |
|
|
||||||
| Long-term debt |
|
|
||||||
| Total liabilities |
|
|
||||||
| EQUITY | ||||||||
| Preferred stock |
|
|
||||||
|
Common Shares, $
|
|
|
||||||
| Capital surplus |
|
|
||||||
| Retained earnings |
|
|
||||||
|
Treasury stock, at cost (
|
(
|
(
|
||||||
| Accumulated other comprehensive income (loss) |
|
|
||||||
| Key shareholders’ equity |
|
|
||||||
| Noncontrolling interests |
|
|
||||||
| Total equity |
|
|
||||||
| Total liabilities and equity | $ |
|
$ |
|
||||
| Year ended December 31, | |||||||||||
| dollars in millions, except per share amounts | 2020 | 2019 | 2018 | ||||||||
| INTEREST INCOME | |||||||||||
| Loans | $ |
|
$ |
|
$ |
|
|||||
| Loans held for sale |
|
|
|
||||||||
| Securities available for sale |
|
|
|
||||||||
| Held-to-maturity securities |
|
|
|
||||||||
| Trading account assets |
|
|
|
||||||||
| Short-term investments |
|
|
|
||||||||
| Other investments |
|
|
|
||||||||
| Total interest income |
|
|
|
||||||||
| INTEREST EXPENSE | |||||||||||
| Deposits |
|
|
|
||||||||
| Federal funds purchased and securities sold under repurchase agreements |
|
|
|
||||||||
| Bank notes and other short-term borrowings |
|
|
|
||||||||
| Long-term debt |
|
|
|
||||||||
| Total interest expense |
|
|
|
||||||||
| NET INTEREST INCOME |
|
|
|
||||||||
| Provision for credit losses |
|
|
|
||||||||
| Net interest income after provision for credit losses |
|
|
|
||||||||
| NONINTEREST INCOME | |||||||||||
| Trust and investment services income |
|
|
|
||||||||
| Investment banking and debt placement fees |
|
|
|
||||||||
| Service charges on deposit accounts |
|
|
|
||||||||
| Operating lease income and other leasing gains |
|
|
|
||||||||
| Corporate services income |
|
|
|
||||||||
| Cards and payments income |
|
|
|
||||||||
| Corporate-owned life insurance income |
|
|
|
||||||||
| Consumer mortgage income |
|
|
|
||||||||
| Commercial mortgage servicing fees |
|
|
|
||||||||
|
Other income
(a)
|
|
|
|
||||||||
| Total noninterest income |
|
|
|
||||||||
| NONINTEREST EXPENSE | |||||||||||
| Personnel |
|
|
|
||||||||
| Net occupancy |
|
|
|
||||||||
| Computer processing |
|
|
|
||||||||
| Business services and professional fees |
|
|
|
||||||||
| Equipment |
|
|
|
||||||||
| Operating lease expense |
|
|
|
||||||||
| Marketing |
|
|
|
||||||||
| FDIC assessment |
|
|
|
||||||||
| Intangible asset amortization |
|
|
|
||||||||
| OREO expense, net |
|
|
|
||||||||
| Other expense |
|
|
|
||||||||
| Total noninterest expense |
|
|
|
||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
|
||||||||
| Income taxes |
|
|
|
||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
|
||||||||
| Income (loss) from discontinued operations |
|
|
|
||||||||
| NET INCOME (LOSS) |
|
|
|
||||||||
| Less: Net income (loss) attributable to noncontrolling interests |
|
|
|
||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO KEY | $ |
|
$ |
|
$ |
|
|||||
| Income (loss) from continuing operations attributable to Key common shareholders | $ |
|
$ |
|
$ |
|
|||||
| Net income (loss) attributable to Key common shareholders |
|
|
|
||||||||
| Per Common Share: | |||||||||||
| Income (loss) from continuing operations attributable to Key common shareholders | $ |
|
$ |
|
$ |
|
|||||
| Income (loss) from discontinued operations, net of taxes |
|
|
|
||||||||
|
Net income (loss) attributable to Key common shareholders
(b)
|
|
|
|
||||||||
| Per Common Share — assuming dilution: | |||||||||||
| Income (loss) from continuing operations attributable to Key common shareholders | $ |
|
$ |
|
$ |
|
|||||
| Income (loss) from discontinued operations, net of taxes |
|
|
|
||||||||
|
Net income (loss) attributable to Key common shareholders
(b)
|
|
|
|
||||||||
| Cash dividends declared per Common Share | $ |
|
$ |
|
$ |
|
|||||
| Weighted-average Common Shares outstanding (000) |
|
|
|
||||||||
| Effect of convertible preferred stock |
|
|
|
||||||||
| Effect of Common Share options and other stock awards |
|
|
|
||||||||
|
Weighted-average Common Shares and potential Common Shares outstanding (000)
(c)
|
|
|
|
||||||||
| Year ended December 31, | |||||||||||
| in millions | 2020 | 2019 | 2018 | ||||||||
| Net income (loss) | $ |
|
$ |
|
$ |
|
|||||
| Other comprehensive income (loss), net of tax: | |||||||||||
|
Net unrealized gains (losses) on securities available for sale, net of income taxes of $(
|
|
|
(
|
||||||||
|
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $(
|
|
|
|
||||||||
|
Foreign currency translation adjustments, net of income taxes of $
|
|
|
(
|
||||||||
|
Net pension and postretirement benefit costs, net of income taxes of $(
|
|
|
|
||||||||
| Total other comprehensive income (loss), net of tax |
|
|
(
|
||||||||
| Comprehensive income (loss) |
|
|
|
||||||||
| Less: Comprehensive income attributable to noncontrolling interests |
|
|
|
||||||||
| Comprehensive income (loss) attributable to Key | $ |
|
$ |
|
$ |
|
|||||
| Key Shareholders’ Equity | |||||||||||||||||||||||||||||
| dollars in millions, except per share amounts |
Preferred
Shares
Outstanding
(000)
|
Common
Shares
Outstanding
(000)
|
Preferred
Stock
|
Common
Shares
|
Capital
Surplus
|
Retained
Earnings
|
Treasury
Stock, at
Cost
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Noncontrolling
Interests
|
||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2017 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
|
||||||||||||||
|
Cumulative effect from changes in accounting principle
(a)
|
(
|
||||||||||||||||||||||||||||
|
Other reclassification of AOCI
|
|
||||||||||||||||||||||||||||
| Net income (loss) |
|
|
|||||||||||||||||||||||||||
| Other comprehensive income (loss) |
(
|
||||||||||||||||||||||||||||
| Deferred compensation |
|
||||||||||||||||||||||||||||
| Cash dividends declared | |||||||||||||||||||||||||||||
|
Common Shares ($
|
(
|
||||||||||||||||||||||||||||
|
Series D Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series E Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series F Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
| Issuance of Series F Preferred Stock |
|
|
(
|
||||||||||||||||||||||||||
| Open market Common Share repurchases |
(
|
(
|
|||||||||||||||||||||||||||
| Employee equity compensation program Common Share repurchases |
(
|
— |
(
|
||||||||||||||||||||||||||
| Common shares reissued (returned) for stock options and other employee benefit plans |
|
(
|
|
||||||||||||||||||||||||||
| Net contribution from (distribution to) noncontrolling interests |
(
|
||||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2018 |
|
|
|
|
|
|
(
|
(
|
|
||||||||||||||||||||
|
Net income (loss)
|
|
|
|||||||||||||||||||||||||||
|
Other comprehensive income (loss)
|
|
||||||||||||||||||||||||||||
|
Deferred compensation
|
|
||||||||||||||||||||||||||||
|
Cash dividends declared
|
|||||||||||||||||||||||||||||
|
Common Shares ($
|
(
|
||||||||||||||||||||||||||||
|
Series D Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series E Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series F Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series G Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
| Issuance of Series G Preferred Stock |
|
|
(
|
||||||||||||||||||||||||||
|
Open market Common Share repurchases
|
(
|
(
|
|||||||||||||||||||||||||||
|
Employee equity compensation program Common Share repurchases
|
(
|
(
|
(
|
||||||||||||||||||||||||||
|
Common Shares reissued (returned) for stock options and other employee benefit plans
|
|
(
|
|
||||||||||||||||||||||||||
|
Net contribution from (distribution to) noncontrolling interests
|
(
|
||||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2019 |
|
|
|
|
|
|
(
|
|
|
||||||||||||||||||||
|
|
(
|
||||||||||||||||||||||||||||
|
Other reclassification of AOCI
|
(
|
||||||||||||||||||||||||||||
| Net income (loss) |
|
|
|||||||||||||||||||||||||||
| Other comprehensive income (loss) |
|
||||||||||||||||||||||||||||
| Deferred compensation |
|
||||||||||||||||||||||||||||
| Cash dividends declared | |||||||||||||||||||||||||||||
|
Common Shares ($
|
(
|
||||||||||||||||||||||||||||
|
Series D Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series E Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series F Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
|
Series G Preferred Stock ($
|
(
|
||||||||||||||||||||||||||||
| Open market Common Share repurchases |
(
|
(
|
|||||||||||||||||||||||||||
|
Employee equity compensation program Common Share repurchases
|
(
|
(
|
(
|
||||||||||||||||||||||||||
|
Common Shares reissued (returned) for stock options and other employee benefit plans
|
|
|
|
||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2020 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|
||||||||||||||
| Year ended December 31, | |||||||||||
| in millions | 2020 | 2019 | 2018 | ||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net income (loss) | $ |
|
$ |
|
$ |
|
|||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Provision for credit losses |
|
|
|
||||||||
| Depreciation and amortization expense, net |
|
|
|
||||||||
| Accretion of acquired loans |
|
|
|
||||||||
| Increase in cash surrender value of corporate-owned life insurance |
(
|
(
|
(
|
||||||||
| Stock-based compensation expense |
|
|
|
||||||||
| FDIC reimbursement (payments), net of FDIC expense |
|
|
(
|
||||||||
| Deferred income taxes (benefit) |
(
|
|
|
||||||||
| Proceeds from sales of loans held for sale |
|
|
|
||||||||
| Originations of loans held for sale, net of repayments |
(
|
(
|
(
|
||||||||
| Net losses (gains) from sale of loans held for sale |
(
|
(
|
(
|
||||||||
| Net losses (gains) and writedown on OREO |
|
|
|
||||||||
| Net losses (gains) on leased equipment |
(
|
(
|
|
||||||||
| Net losses (gains) on sales of fixed assets |
|
(
|
|
||||||||
| Net securities losses (gains) |
(
|
(
|
|
||||||||
| Net decrease (increase) in trading account assets |
|
(
|
(
|
||||||||
| Gain on sale of KIBS |
|
|
(
|
||||||||
| Other operating activities, net |
(
|
|
|
||||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
|
|
||||||||
| INVESTING ACTIVITIES | |||||||||||
| Cash received (used) in acquisitions, net of cash acquired |
|
(
|
|
||||||||
| Proceeds from sale of KIBS |
|
|
|
||||||||
| Net decrease (increase) in short-term investments, excluding acquisitions |
(
|
|
|
||||||||
| Purchases of securities available for sale |
(
|
(
|
(
|
||||||||
| Proceeds from sales of securities available for sale |
|
|
|
||||||||
| Proceeds from prepayments and maturities of securities available for sale |
|
|
|
||||||||
| Proceeds from prepayments and maturities of held-to-maturity securities |
|
|
|
||||||||
| Purchases of held-to-maturity securities |
(
|
(
|
(
|
||||||||
| Purchases of other investments |
(
|
(
|
(
|
||||||||
| Proceeds from sales of other investments |
|
|
|
||||||||
| Proceeds from prepayments and maturities of other investments |
|
|
|
||||||||
| Net decrease (increase) in loans, excluding acquisitions, sales, and transfers |
(
|
(
|
(
|
||||||||
| Proceeds from sales of portfolio loans |
|
|
|
||||||||
| Proceeds from corporate-owned life insurance |
|
|
|
||||||||
| Purchases of premises, equipment, and software |
(
|
(
|
(
|
||||||||
| Proceeds from sales of premises and equipment |
|
|
|
||||||||
| Proceeds from sales of OREO |
|
|
|
||||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
(
|
(
|
(
|
||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net increase (decrease) in deposits, excluding acquisitions |
|
|
|
||||||||
| Net increase (decrease) in short-term borrowings |
(
|
|
(
|
||||||||
| Net proceeds from issuance of long-term debt |
|
|
|
||||||||
| Payments on long-term debt |
(
|
(
|
(
|
||||||||
| Issuance of preferred shares |
|
|
|
||||||||
| Repurchase of Common Shares |
(
|
(
|
(
|
||||||||
| Employee equity compensation program Common Share repurchases |
(
|
(
|
(
|
||||||||
| Net proceeds from reissuance of Common Shares |
|
|
|
||||||||
| Cash dividends paid |
(
|
(
|
(
|
||||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
|
(
|
||||||||
| NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS |
|
|
|
||||||||
| CASH AND DUE FROM BANKS AT BEGINNING OF YEAR |
|
|
|
||||||||
| CASH AND DUE FROM BANKS AT END OF YEAR | $ |
|
$ |
|
$ |
|
|||||
| Additional disclosures relative to cash flows: | |||||||||||
| Interest paid | $ |
|
$ |
|
$ |
|
|||||
| Income taxes paid (refunded) |
|
|
|
||||||||
| Noncash items: | |||||||||||
| Reduction of secured borrowing and related collateral | $ |
|
|
$ |
|
||||||
| Loans transferred to portfolio from held for sale |
|
|
|
||||||||
| Loans transferred to held for sale from portfolio |
|
|
(
|
||||||||
| Loans transferred to other real estate owned |
|
|
|
||||||||
| CMBS risk retentions |
|
|
|
||||||||
| ABS risk retentions |
|
|
|
||||||||
| Pre-ASC 326 Adoption | Impact of ASC 326 Adoption | As Reported Under ASC 326 | |||||||||
| in millions | December 31, 2019 | January 1, 2020 | |||||||||
| Allowance for credit losses | |||||||||||
| Commercial | |||||||||||
| Commercial and industrial | $ |
|
$ |
(
|
$ |
|
|||||
| Real estate — commercial mortgage |
|
|
|
||||||||
| Real estate — construction |
|
(
|
|
||||||||
| Commercial lease financing |
|
|
|
||||||||
| Total commercial loans |
|
(
|
|
||||||||
| Consumer | |||||||||||
| Real estate — residential mortgage |
|
|
|
||||||||
| Home equity loans |
|
|
|
||||||||
| Consumer direct loans |
|
|
|
||||||||
| Credit cards |
|
|
|
||||||||
| Consumer indirect loans |
|
|
|
||||||||
| Total consumer loans |
|
|
|
||||||||
| Total ALLL — continuing operations |
|
|
|
||||||||
| Discontinued operations |
|
|
|
||||||||
| Total ALLL |
|
|
|
||||||||
| Accrued expense and other liabilities |
|
|
|
||||||||
| Total allowance for credit losses | $ |
|
$ |
|
$ |
|
|||||
| Standard | Date of Adoption | Description | Effect on Financial Statements or Other Significant Matters | ||||||||
|
ASU 2019-12, Simplifying the
Accounting for Income Taxes |
January 1, 2021
|
This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance, such as exceptions related to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period when a
year-to-date loss exceeds the anticipated loss, and the recognition of deferred tax liabilities when a foreign subsidiary becomes an equity method investment and when a foreign equity method investment becomes a subsidiary. Along with general improvements, it adds simplifications related to franchise taxes, the tax basis of goodwill, and the method for recognizing an enacted change in tax laws. The guidance also specifies that an entity is not required to allocate the consolidated amount of certain tax expense to a legal entity not subject to tax in its own separate financial statements. The guidance should be applied on either a retrospective, modified retrospective, or prospective basis depending on the amendment. |
Key adopted this guidance on January 1, 2021 using the transition guidance prescribed by amendment. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. | ||||||||
|
ASU 2020-01,
Clarifying the Interactions between Topic 321,Investments —Equity Securities; Topic 323, Investments— Equity Method and Joint Ventures; and Topic 815, Derivatives and Hedging |
January 1, 2021
|
This guidance clarifies that when applying the measurement alternative in Topic 321, companies should consider certain observable transactions that require the application or discontinuance of the equity method under Topic 323.
It also clarifies that companies should not consider whether the underlying securities in certain forward contracts and purchased options would be accounted for under the equity method or fair value option when determining the method of accounting for those contracts. This guidance should be applied on a prospective basis. |
Key adopted this guidance on January 1, 2021 on a prospective basis. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. | ||||||||
|
ASU 2020-08,
Codification Improvements to Subtopic 310-20, Receivables— Nonrefundable Fees and Other Costs |
January 1, 2021 |
This ASU clarifies that at each reporting period an entity should reevaluate whether a callable debt security is within the scope of ASC 310, which says that to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the
issuer at the earliest call date, the premium shall be amortized to the earliest call date, unless prepayment guidance is applied. This guidance should be applied on a prospective basis. |
Key adopted this guidance on January 1, 2021 on a prospective basis. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. | ||||||||
| ASU 2021-01, Reference Rate Reform (Topic 848) | January 1, 2021 |
The ASU clarifies that certain optional expedients and exceptions related to contracts modified as a result of reference rate reform and hedge accounting apply to derivatives affected by the discounting transition, such as those that use an interest rate for margining, discounting, or contract price alignment.
The guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, Alternatively, it may be applied on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, until the financial statements are available to be issued. |
Key adopted this guidance on January 1, 2021 on a prospective basis and will assess the impact in conjunction with the reference rate transition as it occurs over the next two years. | ||||||||
| Year ended December 31, | |||||||||||
| dollars in millions, except per share amounts | 2020 | 2019 | 2018 | ||||||||
| EARNINGS | |||||||||||
| Income (loss) from continuing operations | $ |
|
$ |
|
$ |
|
|||||
| Less: Net income (loss) attributable to noncontrolling interests |
|
|
|
||||||||
| Income (loss) from continuing operations attributable to Key |
|
|
|
||||||||
| Less: Dividends on preferred stock |
|
|
|
||||||||
| Income (loss) from continuing operations attributable to Key common shareholders |
|
|
|
||||||||
| Income (loss) from discontinued operations, net of taxes |
|
|
|
||||||||
| Net income (loss) attributable to Key common shareholders | $ |
|
$ |
|
$ |
|
|||||
| WEIGHTED-AVERAGE COMMON SHARES | |||||||||||
| Weighted-average Common Shares outstanding (000) |
|
|
|
||||||||
| Effect of common share options and other stock awards |
|
|
|
||||||||
|
Weighted-average common shares and potential Common Shares outstanding (000)
(a)
|
|
|
|
||||||||
| EARNINGS PER COMMON SHARE | |||||||||||
| Income (loss) from continuing operations attributable to Key common shareholders | $ |
|
$ |
|
$ |
|
|||||
| Income (loss) from discontinued operations, net of taxes |
|
|
|
||||||||
|
Net income (loss) attributable to Key common shareholders
(b)
|
|
|
|
||||||||
| Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution |
|
|
|
||||||||
| Income (loss) from discontinued operations, net of taxes |
|
|
|
||||||||
|
Net income (loss) attributable to Key common shareholders — assuming dilution
(b)
|
|
|
|
||||||||
| December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
|
Commercial and industrial
(a)
|
$ |
|
$ |
|
||||
| Commercial real estate: | ||||||||
| Commercial mortgage |
|
|
||||||
| Construction |
|
|
||||||
| Total commercial real estate loans |
|
|
||||||
|
Commercial lease financing
(b)
|
|
|
||||||
| Total commercial loans |
|
|
||||||
| Residential — prime loans: | ||||||||
| Real estate — residential mortgage |
|
|
||||||
| Home equity loans |
|
|
||||||
| Total residential — prime loans |
|
|
||||||
| Consumer direct loans |
|
|
||||||
| Credit cards |
|
|
||||||
| Consumer indirect loans |
|
|
||||||
| Total consumer loans |
|
|
||||||
|
Total loans
(c)
|
$ |
|
$ |
|
||||
| in millions | December 31, 2019 | Impact of ASC 326 Adoption | January 1, 2020 | Provision | Charge-offs | Recoveries | December 31, 2020 | |||||||||||||||||||
| Commercial and Industrial | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||
| Real estate — commercial mortgage |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Real estate — construction |
|
(
|
|
|
|
|
|
|||||||||||||||||||
| Total commercial real estate loans |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Commercial lease financing |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Total commercial loans |
|
(
|
|
|
(
|
|
|
|||||||||||||||||||
| Real estate — residential mortgage |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Home equity loans |
|
|
|
(
|
(
|
|
|
|||||||||||||||||||
| Consumer direct loans |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Credit cards |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Consumer indirect loans |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Total consumer loans |
|
|
|
|
(
|
|
|
|||||||||||||||||||
| Total ALLL — continuing operations |
|
|
|
|
(a)
|
(
|
|
|
||||||||||||||||||
| Discontinued operations |
|
|
|
(
|
(
|
|
|
|||||||||||||||||||
| Total ALLL — including discontinued operations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
||||||||||||
| in millions | December 31, 2018 | Provision | Charge-offs | Recoveries | December 31, 2019 | ||||||||||||||||||
| Commercial and Industrial | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||
| Commercial real estate: | |||||||||||||||||||||||
| Real estate — commercial mortgage |
|
|
(
|
|
|
||||||||||||||||||
| Real estate — construction |
|
(
|
(
|
|
|
||||||||||||||||||
| Total commercial real estate loans |
|
|
(
|
|
|
||||||||||||||||||
| Commercial lease financing |
|
|
(
|
|
|
||||||||||||||||||
| Total commercial loans |
|
|
(
|
|
|
||||||||||||||||||
| Real estate — residential mortgage |
|
|
(
|
|
|
||||||||||||||||||
| Home equity loans |
|
|
(
|
|
|
||||||||||||||||||
| Consumer direct loans |
|
|
(
|
|
|
||||||||||||||||||
| Credit cards |
|
|
(
|
|
|
||||||||||||||||||
| Consumer indirect loans |
|
|
(
|
|
|
||||||||||||||||||
| Total consumer loans |
|
|
(
|
|
|
||||||||||||||||||
| Total ALLL — continuing operations |
|
|
(a) (b)
|
(
|
(b)
|
|
|
||||||||||||||||
| Discontinued operations |
|
|
(
|
|
|
||||||||||||||||||
| Total ALLL — including discontinued operations | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||
| in millions | December 31, 2017 | Provision | Charge-offs | Recoveries | December 31, 2018 | |||||||||||||||
| Commercial and industrial | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
||||||||||
| Real estate — commercial mortgage |
|
|
(
|
|
|
|||||||||||||||
| Real estate — construction |
|
|
|
|
|
|||||||||||||||
| Commercial lease financing |
|
(
|
(
|
|
|
|||||||||||||||
| Total commercial loans |
|
|
(
|
|
|
|||||||||||||||
| Real estate — residential mortgage |
|
|
(
|
|
|
|||||||||||||||
| Home equity loans |
|
|
(
|
|
|
|||||||||||||||
| Consumer direct loans |
|
|
(
|
|
|
|||||||||||||||
| Credit cards |
|
|
(
|
|
|
|||||||||||||||
| Consumer indirect loans |
|
|
(
|
|
|
|||||||||||||||
| Total consumer loans |
|
|
(
|
|
|
|||||||||||||||
| Total ALLL — continuing operations |
|
|
(a)
|
(
|
|
|
||||||||||||||
| Discontinued operations |
|
|
(
|
|
|
|||||||||||||||
| Total ALLL — including discontinued operations | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
||||||||||
| Segment | Portfolio |
Key Macroeconomic Variables
(a)
|
||||||
| Commercial | Commercial and industrial | BBB corporate bond rate (spread), GDP, industrial production, and unemployment rate | ||||||
| Commercial real estate | BBB corporate bond rate (spread), property and real estate price indices, and unemployment rate | |||||||
| Commercial lease financing | BBB corporate bond rate (spread), GDP, and unemployment rate | |||||||
| Consumer | Real estate — residential mortgage | GDP, home price index, unemployment rate, and 30 year mortgage rate | ||||||
| Home equity | Home price index, unemployment rate, and 30 year mortgage rate | |||||||
| Consumer direct | Unemployment rate and U.S. household income | |||||||
| Consumer indirect | New vehicle sales, Manheim used vehicle value index, and unemployment rate | |||||||
| Credit cards | Unemployment rate and U.S. household income | |||||||
| Discontinued operations | Unemployment rate | |||||||
| As of December 31, 2020 | Term Loans | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | ||||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year and Internal Risk Rating | |||||||||||||||||||||||||||||
| in millions | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||
| Commercial and Industrial | |||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||
| Pass | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Criticized (Accruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Nonaccruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total commercial and industrial |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Real estate — commercial mortgage | |||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||
| Pass |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Accruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Nonaccruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total real estate — commercial mortgage
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Real estate — construction | |||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||
| Pass |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Accruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Nonaccruing) |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total real estate — construction |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Commercial lease financing | |||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||
| Pass |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Accruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Criticized (Nonaccruing) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total commercial lease financing |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total commercial loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| As of December 31, 2020 | Term Loans | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | ||||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year and FICO Score | |||||||||||||||||||||||||||||
| in millions | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||
| Real estate — residential mortgage | |||||||||||||||||||||||||||||
| FICO Score: | |||||||||||||||||||||||||||||
| 750 and above | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
$ |
|
|||||||||||||
| 660 to 749 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Less than 660 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| No Score |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total real estate — residential mortgage |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Home equity loans | |||||||||||||||||||||||||||||
| FICO Score: | |||||||||||||||||||||||||||||
| 750 and above |
|
|
|
|
|
|
$ |
|
$ |
|
|
||||||||||||||||||
| 660 to 749 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Less than 660 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| No Score |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total home equity loans |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Consumer direct loans | |||||||||||||||||||||||||||||
| FICO Score: | |||||||||||||||||||||||||||||
| 750 and above |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| 660 to 749 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Less than 660 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| No Score |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total consumer direct loans |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Credit cards | |||||||||||||||||||||||||||||
| FICO Score: | |||||||||||||||||||||||||||||
| 750 and above |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| 660 to 749 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Less than 660 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| No Score |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total credit cards |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Consumer indirect loans | |||||||||||||||||||||||||||||
| FICO Score: | |||||||||||||||||||||||||||||
| 750 and above |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| 660 to 749 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Less than 660 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| No Score |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total consumer indirect loans |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total consumer loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| December 31, 2020 | Current |
30-59
Days Past
Due
(b)
|
60-89
Days Past
Due
(b)
|
90 and
Greater
Days Past
Due
(b)
|
Non-performing
Loans
(c)
|
Total Past
Due and
Non-performing
Loans
(c)
|
Total
Loans
(d)
|
||||||||||||||||
| in millions | |||||||||||||||||||||||
| LOAN TYPE | |||||||||||||||||||||||
| Commercial and industrial | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Commercial real estate: | |||||||||||||||||||||||
| Commercial mortgage |
|
|
|
|
|
|
|
||||||||||||||||
| Construction |
|
|
|
|
|
|
|
||||||||||||||||
| Total commercial real estate loans |
|
|
|
|
|
|
|
||||||||||||||||
| Commercial lease financing |
|
|
|
|
|
|
|
||||||||||||||||
| Total commercial loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Real estate — residential mortgage | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Home equity loans |
|
|
|
|
|
|
|
||||||||||||||||
| Consumer direct loans |
|
|
|
|
|
|
|
||||||||||||||||
| Credit cards |
|
|
|
|
|
|
|
||||||||||||||||
| Consumer indirect loans |
|
|
|
|
|
|
|
||||||||||||||||
| Total consumer loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Total loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| December 31, 2019 | Current |
30-59
Days Past
Due
(b)
|
60-89
Days Past
Due
(b)
|
90 and
Greater
Days Past
Due
(b)
|
Non-performing
Loans
|
Total Past
Due and
Non-performing
Loans
|
Purchased
Credit
Impaired
|
Total
Loans
|
||||||||||||||||||
| in millions | ||||||||||||||||||||||||||
| LOAN TYPE | ||||||||||||||||||||||||||
| Commercial and industrial | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
$ |
|
|||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||
| Commercial mortgage |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Construction |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total commercial real estate loans |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Commercial lease financing |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total commercial loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
$ |
|
|||||||||||
| Real estate — residential mortgage | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Home equity loans |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Consumer direct loans |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Credit cards |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Consumer indirect loans |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total consumer loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Total loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
| Commercial loans: | ||||||||
| Extension of Maturity Date | $ |
|
$ |
|
||||
| Payment or Covenant Modification/Deferment |
|
|
||||||
| Bankruptcy Plan Modification |
|
|
||||||
| Increase in new commitment or new money |
|
|
||||||
| Total | $ |
|
$ |
|
||||
| Consumer loans: | ||||||||
| Interest rate reduction | $ |
|
$ |
|
||||
| Other |
|
|
||||||
| Total | $ |
|
$ |
|
||||
| Total TDRs | $ |
|
$ |
|
||||
| December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
| Balance at beginning of the period | $ |
|
$ |
|
||||
| Additions |
|
|
||||||
| Payments |
(
|
(
|
||||||
| Charge-offs |
(
|
(
|
||||||
| Balance at end of period | $ |
|
$ |
|
||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
|
Number
of Loans
|
Pre-modification
Outstanding
Recorded
Investment
|
Post-modification
Outstanding
Recorded
Investment
|
Number
of Loans |
Pre-modification
Outstanding Recorded Investment |
Post-modification
Outstanding Recorded Investment |
||||||||||||||||||
| dollars in millions | |||||||||||||||||||||||
| LOAN TYPE | |||||||||||||||||||||||
| Nonperforming: | |||||||||||||||||||||||
| Commercial and industrial |
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|||||||||||||
| Commercial real estate: | |||||||||||||||||||||||
| Real estate — commercial mortgage |
|
|
|
|
|
|
|||||||||||||||||
| Total commercial real estate loans |
|
|
|
|
|
|
|||||||||||||||||
| Total commercial loans |
|
|
|
|
|
|
|||||||||||||||||
| Real estate — residential mortgage |
|
|
|
|
|
|
|||||||||||||||||
| Home equity loans |
|
|
|
|
|
|
|||||||||||||||||
| Consumer direct loans |
|
|
|
|
|
|
|||||||||||||||||
| Credit cards |
|
|
|
|
|
|
|||||||||||||||||
| Consumer indirect loans |
|
|
|
|
|
|
|||||||||||||||||
| Total consumer loans |
|
|
|
|
|
|
|||||||||||||||||
| Total nonperforming TDRs |
|
|
|
|
|
|
|||||||||||||||||
|
Prior-year accruing:
(a)
|
|||||||||||||||||||||||
| Commercial and industrial |
|
|
|
|
|
|
|||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||
| Real estate — commercial mortgage |
|
|
|
|
|
|
|||||||||||||||||
| Total commercial loans |
|
|
|
|
|
|
|||||||||||||||||
| Real estate — residential mortgage |
|
|
|
|
|
|
|||||||||||||||||
| Home equity loans |
|
|
|
|
|
|
|||||||||||||||||
| Consumer direct loans |
|
|
|
|
|
|
|||||||||||||||||
| Credit cards |
|
|
|
|
|
|
|||||||||||||||||
| Consumer indirect loans |
|
|
|
|
|
|
|||||||||||||||||
| Total consumer loans |
|
|
|
|
|
|
|||||||||||||||||
| Total prior-year accruing TDRs |
|
|
|
|
|
|
|||||||||||||||||
| Total TDRs |
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|||||||||||||
| Twelve Months Ended December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
| Balance at the end of the prior period | $ |
|
$ |
|
||||
| Liability for credit losses on contingent guarantees at the end of the prior period |
|
|
||||||
| Cumulative effect from change in accounting principle (a), (b) |
|
|
||||||
| Balance at beginning of period |
|
|
||||||
| Provision (credit) for losses on off balance sheet exposures |
|
|
||||||
| Balance at end of period | $ |
|
$ |
|
||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| in millions | ||||||||||||||||||||||||||
| ASSETS MEASURED ON A RECURRING BASIS | ||||||||||||||||||||||||||
| Trading account assets: | ||||||||||||||||||||||||||
| U.S. Treasury, agencies and corporations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||||||
| States and political subdivisions |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Other mortgage-backed securities |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Other securities |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total trading account securities |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Commercial loans |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total trading account assets |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Securities available for sale: | ||||||||||||||||||||||||||
| U.S. Treasury, agencies and corporations |
|
|
|
|
|
|
|
|
||||||||||||||||||
| States and political subdivisions |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Agency residential collateralized mortgage obligations |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Agency residential mortgage-backed securities |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Agency commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Other securities |
|
|
$ |
|
|
|
|
$ |
|
|
||||||||||||||||
| Total securities available for sale |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Other investments: | ||||||||||||||||||||||||||
| Principal investments: | ||||||||||||||||||||||||||
| Direct |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Indirect (measured at NAV)
(a)
|
— | — | — |
|
— | — | — |
|
||||||||||||||||||
| Total principal investments |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Equity investments: | ||||||||||||||||||||||||||
| Direct |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Direct (measured at NAV)
(a)
|
— | — | — |
|
— | — | — |
|
||||||||||||||||||
|
Indirect (measured at NAV)
(a)
|
— | — | — |
|
— | — | — |
|
||||||||||||||||||
| Total equity investments |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total other investments |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Loans, net of unearned income (residential) |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Loans held for sale (residential) |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||
| Interest rate |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Foreign exchange | $ |
|
|
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
| Commodity |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Credit |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Derivative assets |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Netting adjustments
(b)
|
|
|
|
(
|
|
|
|
(
|
||||||||||||||||||
| Total derivative assets |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total assets on a recurring basis at fair value | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| LIABILITIES MEASURED ON A RECURRING BASIS | ||||||||||||||||||||||||||
| Bank notes and other short-term borrowings: | ||||||||||||||||||||||||||
| Short positions | $ |
|
$ |
|
|
$ |
|
$ |
|
$ |
|
|
$ |
|
||||||||||||
| Derivative liabilities: | ||||||||||||||||||||||||||
| Interest rate |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Foreign exchange |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Commodity |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Credit |
|
|
$ |
|
|
|
|
$ |
|
|
||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Derivative liabilities |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Netting adjustments
(b)
|
|
|
|
(
|
|
|
|
(
|
||||||||||||||||||
| Total derivative liabilities |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Total liabilities on a recurring basis at fair value | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
| Securities (includes trading account assets securities available for sale, and U.S. Treasury Bills classified as short-term investments) |
Fair value of level 1 securities is determined by:
• Quoted market prices available in an active market for identical securities. This includes exchange-traded equity securities.
Fair value of level 2 securities is determined by:
• Pricing models (either by a third party pricing service or internally). Inputs include: yields, benchmark securities, bids, offers, actual trade data (i.e., spreads, credit ratings, and interest rates) for comparable assets, spread tables, matrices, high-grade scales, and option-adjusted spreads.
• Observable market prices of similar securities.
Fair value of level 3 securities is determined by:
• Internally developed valuation techniques, principally discounted cash flow methods (income approach).
• Revenue multiples of comparable public companies (market approach).
For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value.
The valuations provided by the third-party pricing service are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, and reference data obtained from market research publications. Inputs used by the third-party pricing service in valuing CMOs and other mortgage-backed securities also include new issue data, monthly payment information, whole loan collateral performance, and “To Be Announced” prices. In valuations of securities issued by state and political subdivisions, inputs used by the third-party pricing service also include material event notices. We regularly validate the pricing methodologies of valuations derived from a third-party pricing service to ensure the fair value determination is consistent with applicable accounting guidance and that our assets are properly classified in the fair value hierarchy. To perform this validation, we:
•
review documentation received from our third-party pricing service regarding the inputs used in its valuations and determine a level assessment for each category of securities;
•
substantiate actual inputs used for a sample of securities by comparing the actual inputs used by our third-party pricing service to comparable inputs for similar securities; and
•
substantiate the fair values determined for a sample of securities by comparing the fair values provided by our third-party pricing service to prices from other independent sources for the same and similar securities.
We analyze variances and conduct additional research with our third-party pricing service and take appropriate steps based on our findings.
|
Level 1, 2, and 3 (primarily Level 2) | ||||||
| Commercial loans (trading account assets) |
Fair value is based on:
• Observable market price spreads for similar loans. Valuations reflect prices within the bid-ask spread that are most representative of fair value.
|
Level 2 | ||||||
| Principal investments (direct) |
Direct principal investments consist of equity and debt instruments of private companies made by our principal investing entities. Fair value is determined using:
• Operating performance and market multiples of comparable businesses
• Other unique facts and circumstances related to each individual investment
Direct principal investments are accounted for as investment companies in accordance with the applicable accounting guidance, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings.
We are in the process of winding down our direct principal investment portfolio. As of December 31, 2020, the balance is less than $1 million.
|
Level 3 | ||||||
| Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
| Principal investments (indirect) |
Indirect principal investments include primary and secondary investments in private equity funds engaged mainly in venture- and growth-oriented investing. These investments do not have readily determinable fair values and qualify for the practical expedient to estimate fair value based upon net asset value per share (or its equivalent, such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed).
Indirect principal investments are also accounted for as investment companies, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings.
Under the provisions of the Volcker Rule, we are required to dispose or conform our indirect investments to the requirements of the statute by no later than July 21, 2022. As of December 31, 2020, we have not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology.
|
NAV | ||||||
| Financial support provided | ||||||||||||||||||||||||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
| in millions | Fair Value |
Unfunded
Commitments
|
Funded
Commitments
|
Funded
Other
|
Funded
Commitments
|
Funded
Other
|
||||||||||||||||||||||||||||||||
| INVESTMENT TYPE | ||||||||||||||||||||||||||||||||||||||
| Direct investments | $ |
|
|
|
|
|
$ |
|
||||||||||||||||||||||||||||||
|
Indirect investments
(a)
|
|
$ |
|
$ |
|
|
$ |
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
| Other direct equity investments |
Fair value is determined using:
• Discounted cash flows
• Operating performance and market/exit multiples of comparable businesses
• Other unique facts and circumstances related to each individual investment
For level 3 securities, increases in the discount rate applied in the discounted cash flow models would negatively affect the fair value. Increases in valuation multiples of comparable companies would positively affect the fair value. Level 2 investments reflect the price of recent investments, which is deemed representative of fair value.
|
Level 2 and 3 | ||||||
| Other direct and indirect equity investments (NAV) |
Certain direct investments do not have readily determinable fair values and qualify for the practical expedient in the accounting guidance that allows us to estimate fair value based upon net asset value per share.
|
NAV | ||||||
| Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
| Loans held for sale and held for investment (residential) |
Residential mortgage loans held for sale are accounted for at fair value. Fair values are based on:
• Quoted market prices, where available
• Prices for other traded mortgage loans with similar characteristics
• Purchase commitments and bid information received from market participants
Prices are adjusted as necessary to include:
• The embedded servicing value in the loans
• The specific characteristics of certain loans that are priced based on the pricing of similar loans. (These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans.)
Residential loans held for investment: Certain residential loans held for sale contain salability exceptions that make them unable to be sold into the performing loan sales market. Loans in this category are transferred to the held to maturity loan portfolio and are included in “Loans, net of unearned income” on the balance sheet. This type of loan is classified as level 3 in the valuation hierarchy as transaction details regarding sales of this type of loan are often unavailable.
Fair value is based upon:
• Unobservable bid information from brokers and investors
Higher (lower) unobservable bid information would have resulted in higher (lower) fair value measurements.
|
Level 1, 2 and 3 (primarily level 2) | ||||||
| Derivatives |
Exchange-traded derivatives are valued using quoted prices in active markets and, therefore, are classified as Level 1 instruments.
The majority of our derivative positions are Level 2 and are valued using internally developed models based on market convention and observable market inputs. These derivative contracts include interest rate swaps, certain options, floors, cross currency swaps, credit default swaps, and forward mortgage loan sale commitments. Significant inputs used in the valuation models include:
• LIBOR, SOFR and OIS curves, index pricing curves, foreign currency curves
• Volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity)
We have customized derivative instruments and risk participations that are classified as Level 3 instruments. These derivative positions are valued using internally developed models, with inputs consisting of available market data, including:
• Credit spreads and interest rates
The unobservable internally derived assumptions include:
• Loss given default
• Internal risk assessments of customers
The fair value represents an estimate of the amount that the risk participation counterparty would need to pay/receive as of the measurement date based on the probability of customer default on the swap transaction and the fair value of the underlying customer swap. Therefore, for sold risk participation agreements, a higher loss probability and a lower credit rating would negatively affect the fair value of the risk participations and a lower loss probability and higher credit rating would positively affect the fair value of the risk participations. (For purchased risk participation agreements, higher loss probabilities and lower credit ratings would positively affect the fair value.)
|
Level 1, 2, and 3 (primarily level 2) | ||||||
| Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
| Derivatives (continued) |
We use interest rate lock commitments for our residential mortgage business, which are classified as Level 3 instruments. The significant components of the valuation model include:
• Interest rates observable in the market
• Investor supplied prices for similar securities
• The probability of the loan closing (i.e. the "pull-through" amount, a significant unobservable input). Increases (decreases) in the probability of the loan closing would have resulted in higher (lower) fair value measurements.
Valuation of residential mortgage forward sale commitments utilizes observable market prices of comparable commitments and mortgage securities (Level 2).
The fair values of our derivatives include a credit valuation adjustment related to both counterparty and our own creditworthiness. The credit component considers master netting and collateral agreements and is determined by the individual counterparty based on potential future exposures, expected recovery rates, and market-implied probabilities of default.
|
Level 1, 2, and 3 (primarily level 2) | ||||||
| Liability for short positions |
This includes fixed income securities held by our broker dealer in its trading inventory. Fair value of level 1 securities is determined by:
• Quoted market prices available in an active market for identical securities
Fair value of level 2 securities is determined by:
• Observable market prices of similar securities
• Market activity, spreads, credit ratings and interest rates for each security type
|
Level 1 and 2 | ||||||
| in millions |
Beginning
of Period
Balance
|
Gains (Losses) included in
comprehensive income
|
Gains
(Losses)
Included
in Earnings
|
Purchases | Sales | Settlements | Transfers Other |
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
End of
Period
Balance
|
Unrealized
Gains
(Losses)
Included in
Earnings
|
||||||||||||||||||||||||||||||||||||
| Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| Securities available for sale | |||||||||||||||||||||||||||||||||||||||||||||||
| Other securities | $ |
|
$ |
|
|
|
|
|
|
|
|
|
$ |
|
|
||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Principal investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| Equity investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct |
|
|
$ |
|
(c)
|
|
|
|
|
|
|
|
$ |
|
|||||||||||||||||||||||||||||||||
| Loans held for sale (residential) |
|
|
|
|
$ |
(
|
|
$ |
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Loans held for investment (residential) |
|
|
|
|
(
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Derivative instruments
(b)
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate |
|
|
|
(d)
|
$ |
|
(
|
|
|
$ |
|
(e)
|
$ |
(
|
(e)
|
|
|
||||||||||||||||||||||||||||||
| Credit |
(
|
|
(
|
(d)
|
|
(
|
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||
|
Other
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| in millions |
Beginning
of Period
Balance
|
Gains (Losses) included in comprehensive income |
Gains
(Losses)
Included in
Earnings
|
Purchases | Sales | Settlements | Transfers Other |
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
End of
Period
Balance
|
Unrealized
Gains
(Losses)
Included in
Earnings
|
||||||||||||||||||||||||||||||||||||
| Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
| Securities available for sale | |||||||||||||||||||||||||||||||||||||||||||||||
| Other securities | $ |
|
|
|
|
|
|
|
|
|
$ |
(
|
$ |
|
|
||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Principal investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| Equity investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct |
|
|
$ |
|
(c)
|
|
|
|
|
$ |
|
|
|
$ |
|
||||||||||||||||||||||||||||||||
| Loans held for sale (residential) |
|
|
|
|
$ |
(
|
|
$ |
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Loans held for investment (residential) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Derivative instruments
(b)
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate |
|
|
|
(d)
|
$ |
|
(
|
|
|
|
(e)
|
(
|
(e)
|
|
|
||||||||||||||||||||||||||||||||
| Credit |
|
|
(
|
(d)
|
|
|
$ |
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||
|
Other
(a)
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| in millions | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
| ASSETS MEASURED ON A NONRECURRING BASIS | ||||||||||||||||||||||||||
| Impaired loans and leases |
|
|
$ |
|
$ |
|
|
|
$ |
|
$ |
|
||||||||||||||
| Accrued income and other assets |
|
$ |
|
|
|
|
|
|
|
|||||||||||||||||
| Total assets on a nonrecurring basis at fair value |
|
$ |
|
$ |
|
$ |
|
|
|
$ |
|
$ |
|
|||||||||||||
| Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
| Collateral-dependent loans | When a loan is collateral-dependent, the fair value of the loan is determined based on the fair value of the underlying collateral. | Level 3 | ||||||
| Commercial loans and student loans held for sale |
Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming commercial loans and student loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Valuation inputs include:
• Non-binding bids for the respective loans or similar loans
• Recent sales transactions
• Internal models that emulate recent securitizations
|
Level 2 and 3 | ||||||
| Direct financing leases and operating lease assets held for sale |
Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, including:
• Swap rates and bond ratings
• Our own assumptions about the exit market for the leases
• Details about the individual leases in the portfolio
Leases for which we receive a current nonbinding bid, and for which the sale is considered probable, may be classified as Level 2. Valuations of lease and operating lease assets held for sale that employ our own assumptions are classified as Level 3 assets. The inputs based on our own assumptions include changes in the value of leased items and internal credit ratings.
|
Level 2 and 3 | ||||||
|
OREO, other repossessed personal properties, and right-of-use assets
(a)
|
OREO, other repossessed properties, and right-of-use assets are valued based on:
• Appraisals and third-party price opinions, less estimated selling costs
Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2.
|
Level 2 and 3 | ||||||
|
LIHTC, HTC, and NMTC investments
(a)
|
Valuation of LIHTC, HTC and NMTC involves measuring the present value of future tax benefits and comparing that value against the current carrying value of the investment. Expected future tax benefits are discounted to their present value using discounted cash flow modeling that incorporates an appropriate risk premium. LIHTC and HTC investments are impaired when it is more likely than not that the carrying amount of the investment will not be realized. | Level 3 | ||||||
| Other equity investments |
We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative.
At December 31, 2020, and December 31, 2019, the carrying amount of equity investments recorded under this method was $
|
Level 3 | ||||||
|
Mortgage Servicing Rights
(a)
|
Refer to Note 9. Mortgage Servicing Assets | Level 3 | ||||||
| Level 3 Asset (Liability) | Valuation Technique |
Significant
Unobservable Input |
Range
(Weighted-Average)
(b), (c)
|
|||||||||||||||||
|
dollars
in millions
|
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Recurring | ||||||||||||||||||||
|
Securities available-for-sale:
|
||||||||||||||||||||
|
Other securities
|
$ |
|
$ |
|
Discounted cash flows
|
Discount rate
|
N/A (
|
N/A (
|
||||||||||||
|
Marketability discount
|
N/A (
|
N/A (
|
||||||||||||||||||
|
Volatility factor
|
N/A (
|
N/A (
|
||||||||||||||||||
|
Other investments:
(a)
|
||||||||||||||||||||
|
Equity investments
|
||||||||||||||||||||
|
Direct
|
|
|
Discounted cash flows
|
Discount rate
|
|
|
||||||||||||||
|
Marketability discount
|
N/A (
|
N/A (
|
||||||||||||||||||
|
Volatility factor
|
N/A (
|
N/A (
|
||||||||||||||||||
|
Loans, net of unearned income (residential)
|
|
|
Market comparable pricing
|
Comparability factor
|
|
|
||||||||||||||
|
Derivative instruments:
|
||||||||||||||||||||
|
Interest rate
|
|
|
Discounted cash flows
|
Probability of default
|
|
|
||||||||||||||
|
Internal risk rating
|
|
|
||||||||||||||||||
|
Loss given default
|
|
|
||||||||||||||||||
|
Credit (assets)
|
|
|
Discounted cash flows
|
Probability of default
|
|
|
||||||||||||||
|
Internal risk rating
|
|
|
||||||||||||||||||
|
Loss given default
|
|
|
||||||||||||||||||
|
Credit (liabilities)
|
(
|
(
|
Discounted cash flows
|
Probability of default
|
|
|
||||||||||||||
|
Internal risk rating
|
|
|
||||||||||||||||||
|
Loss given default
|
|
|
||||||||||||||||||
|
Other
(d)
|
|
|
Discounted cash flows
|
Loan closing rates
|
|
|
||||||||||||||
| Nonrecurring | ||||||||||||||||||||
| Impaired loans |
|
|
Fair value of underlying collateral | Discount rate |
|
|
||||||||||||||
|
Accrued income and other assets:
(e)
|
||||||||||||||||||||
| OREO |
|
|
Appraised value | Appraised value | N/M | N/M | ||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| Fair Value | ||||||||||||||||||||||||||
| in millions |
Carrying
Amount
|
Level 1 | Level 2 | Level 3 |
Measured
at NAV
|
Netting
Adjustment
|
Total | |||||||||||||||||||
| ASSETS (by measurement category) | ||||||||||||||||||||||||||
| Fair value - net income | ||||||||||||||||||||||||||
|
Trading account assets
(b)
|
$ |
|
|
$ |
|
|
— | — | $ |
|
||||||||||||||||
|
Other investments
(b)
|
|
|
|
$ |
|
$ |
|
— |
|
|||||||||||||||||
|
Loans, net of unearned income (residential)
(d)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Loans held for sale (residential)
(b)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Derivative assets - trading
(b)
|
|
$ |
|
|
|
— | $ |
(
|
(f)
|
|
||||||||||||||||
| Fair value - OCI | ||||||||||||||||||||||||||
|
Securities available for sale
(b)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Derivative assets - hedging
(b) (g)
|
|
|
|
|
— |
|
(f)
|
|
||||||||||||||||||
| Amortized cost | ||||||||||||||||||||||||||
|
Held-to-maturity securities
(c)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Loans, net of unearned income
(d)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Loans held for sale
(b)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
| Other | ||||||||||||||||||||||||||
|
Cash and short-term investments
(a)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
| LIABILITIES (by measurement category) | ||||||||||||||||||||||||||
| Fair value - net income | ||||||||||||||||||||||||||
|
Derivative liabilities - trading
(b)
|
|
|
|
|
— |
(
|
(f)
|
|
||||||||||||||||||
| Fair value - OCI | ||||||||||||||||||||||||||
|
Derivative liabilities - hedging
(b) (g)
|
(
|
|
(
|
|
— |
|
(f)
|
(
|
||||||||||||||||||
| Amortized cost | ||||||||||||||||||||||||||
|
Time deposits
(e)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Short-term borrowings
(a)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Long-term debt
(e)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
| Other | ||||||||||||||||||||||||||
|
Deposits with no stated maturity
(a)
|
|
|
|
|
— | — |
|
|
||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| Fair Value | ||||||||||||||||||||||||||
| in millions |
Carrying
Amount
|
Level 1 | Level 2 | Level 3 |
Measured
at NAV
|
Netting
Adjustment
|
Total | |||||||||||||||||||
| ASSETS (by measurement category) | ||||||||||||||||||||||||||
| Fair value - net income | ||||||||||||||||||||||||||
|
Trading account assets
(b)
|
$ |
|
|
$ |
|
|
— | — | $ |
|
||||||||||||||||
|
Other investments
(b)
|
|
|
|
$ |
|
$ |
|
— |
|
|||||||||||||||||
|
Loans, net of unearned income (residential)
(d)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Loans held for sale (residential)
(b)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Derivative assets - trading
(b)
|
|
$ |
|
|
|
— | $ |
(
|
(f)
|
|
||||||||||||||||
| Fair value - OCI | ||||||||||||||||||||||||||
|
Securities available for sale
(b)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Derivative assets - hedging
(b) (g)
|
|
|
|
|
— |
(
|
(f)
|
|
||||||||||||||||||
| Amortized cost | ||||||||||||||||||||||||||
|
Held-to-maturity securities
(c)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Loans, net of unearned income
(d)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Loans held for sale
(b)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
| Other | ||||||||||||||||||||||||||
|
Cash and short-term investments
(a)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
| LIABILITIES (by measurement category) | ||||||||||||||||||||||||||
| Fair value - net income | ||||||||||||||||||||||||||
|
Derivative liabilities - trading
(b)
|
|
|
|
|
— |
(
|
(f)
|
|
||||||||||||||||||
| Fair value - OCI | ||||||||||||||||||||||||||
|
Derivative liabilities - hedging
(b) (g)
|
|
|
|
|
— |
(
|
(f)
|
|
||||||||||||||||||
| Amortized cost | ||||||||||||||||||||||||||
|
Time deposits
(e)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Short-term borrowings
(a)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
|
Long-term debt
(e)
|
|
|
$ |
|
|
— | — |
|
||||||||||||||||||
| Other | ||||||||||||||||||||||||||
|
Deposits with no stated maturity
(a)
|
|
|
|
|
— | — |
|
|||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||
|
December 31,
in millions
|
Amortized
Cost
(a)
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||||||||||
| SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||||||
| U.S. Treasury, Agencies, and Corporations | $ |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
||||||||||||||||
| States and political subdivisions |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Agency residential collateralized mortgage obligations
|
|
$ |
|
$ |
|
|
|
$ |
|
|
|
||||||||||||||||||
| Agency residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Agency commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Other securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total securities available for sale | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
| HELD-TO-MATURITY SECURITIES | |||||||||||||||||||||||||||||
|
Agency residential collateralized mortgage obligations
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
| Agency residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Agency commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Other securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total held-to-maturity securities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
| Duration of Unrealized Loss Position | ||||||||||||||||||||||||||
| Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
| in millions | Fair Value |
Gross
Unrealized
Losses
|
Fair Value |
Gross
Unrealized
Losses
|
Fair Value |
Gross
Unrealized
Losses
|
||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| Securities available for sale: | ||||||||||||||||||||||||||
| Agency residential collateralized mortgage obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Agency residential mortgage-backed securities |
|
|
(a)
|
$ |
|
|
(a)
|
|
|
|||||||||||||||||
| Agency commercial mortgage-backed securities |
|
|
|
|
|
|
||||||||||||||||||||
| Held-to-maturity securities: | ||||||||||||||||||||||||||
| Agency residential collateralized mortgage obligations |
|
|
|
|
(a)
|
|
|
|||||||||||||||||||
| Other securities |
|
|
(a)
|
|
|
|
|
|||||||||||||||||||
| Total securities in an unrealized loss position | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| Securities available for sale: | ||||||||||||||||||||||||||
| U.S. Treasury, agencies, and corporations | $ |
|
|
(b)
|
$ |
|
|
(b)
|
$ |
|
|
|||||||||||||||
| Agency residential collateralized mortgage obligations |
|
$ |
|
|
$ |
|
|
$ |
|
|||||||||||||||||
| Agency residential mortgage-backed securities |
|
|
(b)
|
|
|
|
|
|||||||||||||||||||
| Agency commercial mortgage-backed securities |
|
|
|
|
|
|
||||||||||||||||||||
| Held-to-maturity securities: | ||||||||||||||||||||||||||
| Agency residential collateralized mortgage obligations |
|
|
|
|
|
|
||||||||||||||||||||
| Agency residential mortgage-backed securities |
|
|
(b)
|
|
|
|
|
|||||||||||||||||||
| Agency commercial mortgage-backed securities |
|
|
|
|
|
|
||||||||||||||||||||
| Asset-backed securities |
|
|
(b)
|
|
|
|
|
|||||||||||||||||||
| Other securities |
|
|
(b)
|
|
|
|
|
|||||||||||||||||||
| Total securities in an unrealized loss position | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Securities
Available for Sale |
Held-to-Maturity
Securities |
||||||||||||||||||||||
| December 31, 2020 |
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||||||||
| in millions | |||||||||||||||||||||||
| Due in one year or less | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Due after one through five years |
|
|
|
|
|||||||||||||||||||
| Due after five through ten years |
|
|
|
|
|||||||||||||||||||
| Due after ten years |
|
|
|
|
|||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
|
Fair Value
(a)
|
Fair Value | ||||||||||||||||||||||
| in millions |
Notional
Amount
|
Derivative
Assets
|
Derivative
Liabilities
|
Notional
Amount
|
Derivative
Assets
|
Derivative
Liabilities
|
|||||||||||||||||
| Derivatives designated as hedging instruments: | |||||||||||||||||||||||
| Interest rate | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Total |
|
|
(
|
|
|
|
|||||||||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
| Interest rate |
|
|
|
|
|
|
|||||||||||||||||
| Foreign exchange |
|
|
|
|
|
|
|||||||||||||||||
| Commodity |
|
|
|
|
|
|
|||||||||||||||||
| Credit |
|
|
|
|
|
|
|||||||||||||||||
|
Other
(b)
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
|
|
|
|
|
|
|||||||||||||||||
|
Netting adjustments
(c)
|
— |
(
|
(
|
— |
(
|
(
|
|||||||||||||||||
| Net derivatives in the balance sheet |
|
|
|
|
|
|
|||||||||||||||||
|
Other collateral
(d)
|
— |
(
|
(
|
— |
(
|
(
|
|||||||||||||||||
| Net derivative amounts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| December 31, 2020 | |||||||||||
| in millions | Balance sheet line item in which the hedge item is included |
Carrying amount of hedged item
(a)
|
Hedge accounting basis adjustment | ||||||||
| Interest rate contracts |
Long-term debt
(b)
|
$ |
|
$ |
|
||||||
| Interest rate contracts |
Securities available for sale
(c)
|
|
(
|
||||||||
| December 31, 2019 | |||||||||||
| in millions | Balance sheet line item in which the hedge item is included |
Carrying amount of hedged item
(a)
|
Hedge accounting basis adjustment | ||||||||
| Interest rate contracts |
Long-term debt
(b)
|
$ |
|
$ |
|
||||||
|
Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships
(a)
|
|||||||||||||||||
| in millions | Interest expense – long-term debt | Interest income – loans | Investment banking and debt placement fees | Interest expense – deposits | Other income | ||||||||||||
| Twelve months ended December 31, 2020 | |||||||||||||||||
| Total amounts presented in the consolidated statement of income | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Net gains (losses) on fair value hedging relationships | |||||||||||||||||
| Interest contracts | |||||||||||||||||
| Recognized on hedged items |
(
|
|
|
|
|
||||||||||||
| Recognized on derivatives designated as hedging instruments |
|
|
|
|
|
||||||||||||
| Net income (expense) recognized on fair value hedges |
|
|
|
|
|
||||||||||||
| Net gain (loss) on cash flow hedging relationships | |||||||||||||||||
| Realized gains (losses) (pre-tax) reclassified from AOCI into net income | |||||||||||||||||
| Interest contracts |
(
|
|
|
|
|
||||||||||||
| Net income (expense) recognized on cash flow hedges | $ |
(
|
$ |
|
$ |
|
|
|
|||||||||
| Twelve months ended December 31, 2019 | |||||||||||||||||
| Total amounts presented in the consolidated statement of income | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Net gains (losses) on fair value hedging relationships | |||||||||||||||||
| Interest contracts | |||||||||||||||||
| Recognized on hedged items |
(
|
|
|
(
|
|
||||||||||||
| Recognized on derivatives designated as hedging instruments |
|
|
|
|
|
||||||||||||
| Net income (expense) recognized on fair value hedges |
(
|
|
|
$ |
(
|
$ |
|
||||||||||
| Net gain (loss) on cash flow hedging relationships | |||||||||||||||||
| Realized gains (losses) (pre-tax) reclassified from AOCI into net income | |||||||||||||||||
| Interest contracts |
(
|
|
|
|
|
||||||||||||
| Foreign exchange contracts |
|
|
|
|
|
||||||||||||
| Net income (expense) recognized on cash flow hedges | $ |
(
|
$ |
|
$ |
|
|
$ |
|
||||||||
| Twelve months ended December 31, 2018 | |||||||||||||||||
| Total amounts presented in the consolidated statement of income | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Net gains (losses) on fair value hedging relationships | |||||||||||||||||
| Interest contracts | |||||||||||||||||
| Recognized on hedged items |
(
|
|
|
|
|
||||||||||||
| Recognized on derivatives designated as hedging instruments |
(
|
|
|
|
|
||||||||||||
| Net income (expense) recognized on fair value hedges |
(
|
|
|
|
$ |
|
|||||||||||
| Net gain (loss) on cash flow hedging relationships | |||||||||||||||||
| Realized gains (losses) (pre-tax) reclassified from AOCI into net income | |||||||||||||||||
| Interest contracts |
(
|
(
|
|
|
|
||||||||||||
| Net income (expense) recognized on cash flow hedges | $ |
(
|
$ |
(
|
$ |
|
|
|
|||||||||
| in millions |
Net Gains (Losses)
Recognized in OCI |
Income Statement Location of Net Gains (Losses)
Reclassified From OCI Into Income |
Net Gains
(Losses) Reclassified
From OCI Into Income
(a)
|
Net Gains (Losses) Recognized in Other Income
(a)
|
||||||||||
| Twelve months ended December 31, 2020 | ||||||||||||||
| Cash Flow Hedges | ||||||||||||||
| Interest rate | $ |
|
Interest income — Loans | $ |
|
$ |
|
|||||||
| Interest rate |
(
|
Interest expense — Long-term debt |
(
|
|
||||||||||
| Interest rate |
(
|
Investment banking and debt placement fees |
|
|
||||||||||
| Net Investment Hedges | ||||||||||||||
| Foreign exchange contracts |
|
Other Income |
|
|
||||||||||
| Total | $ |
|
$ |
|
$ |
|
||||||||
| Twelve months ended December 31, 2019 | ||||||||||||||
| Cash Flow Hedges | ||||||||||||||
| Interest rate | $ |
|
Interest income — Loans | $ |
|
$ |
|
|||||||
| Interest rate |
(
|
Interest expense — Long-term debt |
(
|
|
||||||||||
| Interest rate |
|
Investment banking and debt placement fees |
|
|
||||||||||
| Net Investment Hedges | ||||||||||||||
| Foreign exchange contracts |
(
|
Other Income |
|
|
||||||||||
| Total | $ |
|
$ |
|
$ |
|
||||||||
| Twelve months ended December 31, 2018 | ||||||||||||||
| Cash Flow Hedges | ||||||||||||||
| Interest rate | $ |
(
|
Interest income — Loans | $ |
(
|
$ |
|
|||||||
| Interest rate |
|
Interest expense — Long-term debt |
(
|
|
||||||||||
| Interest rate |
|
Investment banking and debt placement fees |
|
|
||||||||||
| Net Investment Hedges | ||||||||||||||
| Foreign exchange contracts |
|
Other Income |
|
|
||||||||||
| Total | $ |
|
$ |
(
|
$ |
|
||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||
|
Year ended December 31,
in millions
|
Corporate
Services Income |
Consumer Mortgage Income |
Other
Income |
Total |
Corporate
Services Income |
Consumer Mortgage Income |
Other
Income |
Total |
Corporate
Services Income |
Consumer Mortgage Income |
Other
Income |
Total | ||||||||||||||||||||||||||||||||
| NET GAINS (LOSSES) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | $ |
|
|
$ |
(
|
$ |
|
$ |
|
|
$ |
(
|
$ |
|
$ |
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
| Foreign exchange |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Commodity |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Credit |
(
|
|
(
|
(
|
(
|
|
(
|
(
|
|
|
(
|
(
|
||||||||||||||||||||||||||||||||
| Other |
|
$ |
|
|
|
|
$ |
|
|
|
|
$ |
(
|
|
|
|||||||||||||||||||||||||||||
| Total net gains (losses) | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
||||||||||||||||||||
|
December 31,
in millions
|
2020 | 2019 | ||||||
| Interest rate | $ |
|
$ |
|
||||
| Foreign exchange |
|
|
||||||
| Commodity |
|
|
||||||
| Credit |
(
|
|
||||||
| Other |
|
|
||||||
| Derivative assets before collateral |
|
|
||||||
| Add (Less): Related collateral |
|
(
|
||||||
| Total derivative assets | $ |
|
$ |
|
||||
| 2020 | 2019 | ||||||||||||||||||||||
|
December 31,
dollars in millions
|
Notional
Amount |
Average
Term (Years) |
Payment /
Performance Risk |
Notional
Amount |
Average
Term (Years) |
Payment /
Performance Risk |
|||||||||||||||||
| Other | $ |
|
|
|
% | $ |
|
|
|
% | |||||||||||||
| Total credit derivatives sold | $ |
|
— |
|
$ |
|
— |
|
|||||||||||||||
|
December 31,
in millions
|
2020 | 2019 | |||||||||||||||
| Moody’s | S&P | Moody’s | S&P | ||||||||||||||
| KeyBank’s long-term senior unsecured credit ratings | A3 | A- | A3 | A- | |||||||||||||
| One rating downgrade | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Two rating downgrades |
|
|
|
|
|||||||||||||
| Three rating downgrades |
|
|
|
|
|||||||||||||
|
Year ended December 31,
in millions
|
2020 | 2019 | ||||||
| Balance at beginning of period | $ |
|
$ |
|
||||
| Servicing retained from loan sales |
|
|
||||||
| Purchases |
|
|
||||||
| Amortization |
(
|
(
|
||||||
| Temporary impairments |
(
|
(
|
||||||
| Balance at end of period | $ |
|
$ |
|
||||
| Fair value at end of period | $ |
|
$ |
|
||||
| dollars in millions | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
| Valuation Technique |
Significant
Unobservable Input
|
Range | Weighted-Average | Range | Weighted-Average | ||||||||||||||||||
| Discounted cash flow | Expected defaults |
|
|
% |
|
% |
|
|
% |
|
% | ||||||||||||
| Residual cash flows discount rate |
|
|
% |
|
% |
|
|
% |
|
% | |||||||||||||
| Escrow earn rate |
|
|
% |
|
% |
|
|
% |
|
% | |||||||||||||
| Loan assumption rate |
|
|
% |
|
% |
|
|
% |
|
% | |||||||||||||
|
in millions
|
2020 | 2019 | ||||||
|
Balance at beginning of period
|
$ |
|
|
|||||
|
Servicing retained from loan sales
|
|
$ |
|
|||||
|
Purchases
|
|
|
||||||
| Amortization |
(
|
(
|
||||||
| Temporary impairments | $ |
(
|
$ |
|
||||
| Balance at end of period | $ |
|
$ |
|
||||
|
Fair value at end of period
|
$ |
|
$ |
|
||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
| Valuation Technique |
Significant
Unobservable Input
|
Range | Weighted-Average | Range | Weighted-Average | ||||||||||||||||||
| Discounted cash flow | Prepayment speed |
|
|
% |
|
% |
|
|
% |
|
% | ||||||||||||
| Discount rate |
|
|
% |
|
% |
|
|
% |
|
% | |||||||||||||
| Servicing cost |
$
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||||
| in millions | December 31, 2020 | December 31, 2019 | ||||||
| Operating lease cost | $ |
|
$ |
|
||||
| Finance lease cost: | ||||||||
| Amortization of right-of-use assets |
|
|
||||||
| Interest on lease liabilities |
|
|
||||||
| Variable lease cost |
|
|
||||||
|
Total lease cost
(a)
|
$ |
|
$ |
|
||||
| in millions | December 31, 2020 | December 31, 2019 | ||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from finance leases | $ |
|
$ |
|
||||
| Operating cash flows from operating leases |
|
|
||||||
| Financing cash flows from finance leases |
|
|
||||||
|
Right-of-use assets obtained in exchange for lease obligations:
(a)
|
||||||||
| Operating leases | $ |
|
$ |
|
||||
|
Net gain recognized from sale leaseback transaction
(b)
|
$ |
|
$ |
|
||||
| Finance leases |
|
|||||||
| in millions | Balance sheet classification | December 31, 2020 | December 31, 2019 | ||||||||
| Operating lease assets | $ |
|
$ |
|
|||||||
| Operating lease liabilities | Accrued expense and other liabilities |
|
|
||||||||
| Finance leases: | |||||||||||
| Property and equipment, gross | Premises and equipment |
|
|
||||||||
| Accumulated depreciation | Premises and equipment |
(
|
(
|
||||||||
| Property and equipment, net |
|
|
|||||||||
| Finance lease liabilities | Long-term debt |
|
|
||||||||
| December 31, 2020 | December 31, 2019 | |||||||
| Weighted-average remaining lease term: | ||||||||
| Operating leases |
|
|
||||||
| Finance leases |
|
|
||||||
| Weighted-average discount rate: | ||||||||
| Operating leases |
|
% |
|
% | ||||
| Finance leases |
|
% |
|
% | ||||
| in millions | Operating Leases | Finance Leases | Total | ||||||||
| 2021 | $ |
|
$ |
|
$ |
|
|||||
| 2022 |
|
|
|
||||||||
| 2023 |
|
|
|
||||||||
| 2024 |
|
|
|
||||||||
| 2025 |
|
|
|
||||||||
| Thereafter |
|
|
|
||||||||
| Total lease payments |
|
|
|
||||||||
| Less imputed interest |
|
|
|
||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||
| in millions | December 31, 2020 | December 31, 2019 | ||||||
| Sales-type and direct financing leases | ||||||||
| Interest income on lease receivable | $ |
|
$ |
|
||||
| Interest income related to accretion of unguaranteed residual asset |
(
|
|
||||||
| Interest income on deferred fees and costs |
|
|
||||||
| Total sales-type and direct financing lease income |
|
|
||||||
| Operating leases | ||||||||
| Operating lease income related to lease payments |
|
|
||||||
| Other operating leasing gains |
|
|
||||||
| Total operating lease income and other leasing gains |
|
|
||||||
| Total lease income | $ |
|
$ |
|
||||
| in millions | December 31, 2020 | December 31, 2019 | ||||||
| Lease receivables | $ |
|
$ |
|
||||
| Unearned income |
(
|
(
|
||||||
| Unguaranteed residual value |
|
|
||||||
| Deferred fees and costs |
|
|
||||||
| Net investment in sales-type and direct financing leases | $ |
|
$ |
|
||||
| in millions | Sales-type and direct financing lease payments | ||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
| Thereafter |
|
||||
| Total lease payments | $ |
|
|||
| in millions | Operating lease payments | ||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
| Thereafter |
|
||||
| Total lease payments | $ |
|
|||
| December 31, | |||||||||||
|
dollars in millions
|
Useful life
(in years)
|
2020 | 2019 | ||||||||
| Land | Indefinite | $ |
|
$ |
|
||||||
| Buildings and improvements |
|
|
|
||||||||
| Leasehold improvements |
|
|
|
||||||||
| Furniture and equipment |
|
|
|
||||||||
| Capitalized building leases |
|
|
|
||||||||
| Construction in process | N/A |
|
|
||||||||
| Total premises and equipment |
|
|
|||||||||
| Less: Accumulated depreciation and amortization |
(
|
(
|
|||||||||
| Premises and equipment, net | $ |
|
$ |
|
|||||||
| in millions | Consumer Bank | Commercial Bank | Total | ||||||||
| BALANCE AT DECEMBER 31, 2018 | $ |
|
$ |
|
$ |
|
|||||
| Reallocation of goodwill |
(
|
|
|
||||||||
| Laurel Road acquisition |
|
|
|
||||||||
| BALANCE AT DECEMBER 31, 2019 |
|
|
|
||||||||
| BALANCE AT DECEMBER 31, 2020 | $ |
|
$ |
|
$ |
|
|||||
| 2020 | 2019 | ||||||||||||||||
|
December 31,
in millions
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
| Intangible assets subject to amortization: | |||||||||||||||||
| Core deposit intangibles | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| PCCR intangibles |
|
|
|
|
|||||||||||||
| Other intangible assets |
|
|
|
|
|||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Estimated | |||||||||||||||||
| in millions | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||
| Intangible asset amortization expense | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Unconsolidated VIEs | |||||||||||
| in millions |
Total
Assets
|
Total
Liabilities
|
Maximum
Exposure to Loss
|
||||||||
| December 31, 2020 | |||||||||||
| LIHTC investments | $ |
|
$ |
|
$ |
|
|||||
| December 31, 2019 | |||||||||||
| LIHTC investments | $ |
|
$ |
|
$ |
|
|||||
| Unconsolidated VIEs | |||||||||||
| in millions |
Total
Assets
|
Total
Liabilities
|
Maximum
Exposure to Loss
|
||||||||
| December 31, 2020 | |||||||||||
| Indirect investments | $ |
|
$ |
|
$ |
|
|||||
| December 31, 2019 | |||||||||||
| Indirect investments | $ |
|
$ |
|
$ |
|
|||||
|
Year ended December 31,
in millions
|
2020 | 2019 | 2018 | ||||||||
| Currently payable: | |||||||||||
| Federal | $ |
|
$ |
|
$ |
|
|||||
| State |
|
|
|
||||||||
| Total currently payable |
|
|
|
||||||||
| Deferred: | |||||||||||
| Federal |
(
|
|
|
||||||||
| State |
(
|
|
(
|
||||||||
| Total deferred |
(
|
|
|
||||||||
|
Total income tax (benefit) expense
(a)
|
$ |
|
$ |
|
$ |
|
|||||
|
December 31,
in millions
|
2020 | 2019 | ||||||
| Allowance for loan and lease losses | $ |
|
$ |
|
||||
| Employee benefits |
|
|
||||||
| Federal net operating losses and credits |
|
|
||||||
| Fair value adjustments |
|
|
||||||
| Non-tax accruals |
|
|
||||||
|
Operating lease liabilities
(a)
|
|
|
||||||
| State net operating losses and credits |
|
|
||||||
| Other |
|
|
||||||
| Gross deferred tax assets |
|
|
||||||
| Less: Valuation Allowance |
|
|
||||||
| Total deferred tax assets |
|
|
||||||
| Leasing transactions |
|
|
||||||
| Net unrealized securities gains |
|
|
||||||
|
Operating lease right-of-use assets
(a)
|
|
|
||||||
| Other |
|
|
||||||
| Total deferred tax liabilities |
|
|
||||||
|
Net deferred tax assets (liabilities)
(b)
|
$ |
(
|
$ |
(
|
||||
|
Year ended December 31,
dollars in millions
|
2020 | 2019 | 2018 | |||||||||||||||||||||||
| Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||||
| Income (loss) before income taxes times 21% statutory federal tax rate | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||
| Amortization of tax-advantaged investments |
|
|
|
|
|
|
||||||||||||||||||||
| Foreign tax adjustments |
|
|
|
|
|
|
||||||||||||||||||||
| Tax-exempt interest income |
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
| Corporate-owned life insurance income |
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
| State income tax, net of federal tax benefit |
|
|
|
|
|
|
||||||||||||||||||||
| Tax credits |
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
| Tax Cuts and Jobs Act |
|
|
|
|
|
|
||||||||||||||||||||
| Other |
(
|
(
|
|
|
|
|
||||||||||||||||||||
| Total income tax expense (benefit) | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||
|
Year ended December 31,
in millions |
2020 | 2019 | ||||||
| Balance at beginning of year | $ |
|
$ |
|
||||
| Increase for other tax positions of prior years |
|
|
||||||
| Decrease for payments and settlements |
|
|
||||||
| Decrease related to tax positions taken in prior years |
(
|
(
|
||||||
| Balance at end of year | $ |
|
$ |
|
||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
| in millions |
Gross Amount
Presented in
Balance Sheet
|
Netting
Adjustments
(a)
|
Collateral
(b)
|
Net
Amounts
|
Gross Amount
Presented in
Balance Sheet
|
Netting
Adjustments
(a)
|
Collateral
(b)
|
Net
Amounts
|
|||||||||||||||||||||
| Offsetting of financial assets: | |||||||||||||||||||||||||||||
| Reverse repurchase agreements | $ |
|
$ |
(
|
|
|
$ |
|
$ |
(
|
|
|
|||||||||||||||||
| Securities borrowed |
|
|
$ |
(
|
|
|
|
|
|
||||||||||||||||||||
| Total | $ |
|
$ |
(
|
$ |
(
|
|
$ |
|
$ |
(
|
|
|
||||||||||||||||
| Offsetting of financial liabilities: | |||||||||||||||||||||||||||||
|
Repurchase agreements
(c)
|
$ |
|
$ |
(
|
$ |
(
|
|
$ |
|
$ |
(
|
$ |
(
|
|
|||||||||||||||
| Total | $ |
|
$ |
(
|
$ |
(
|
|
$ |
|
$ |
(
|
$ |
(
|
|
|||||||||||||||
| Year ended December 31, | 2020 | 2019 | 2018 | ||||||||
| Average option life |
|
|
|
||||||||
| Future dividend yield |
|
% |
|
% |
|
% | |||||
| Historical share price volatility |
|
|
|
||||||||
| Weighted-average risk-free interest rate |
|
% |
|
% |
|
% | |||||
|
Number of
Options
|
Weighted-Average
Exercise Price Per
Option
|
Weighted-Average
Remaining Life
|
Aggregate
Intrinsic
Value
(a)
|
|||||||||||
| Outstanding at December 31, 2019 |
|
$ |
|
|
$ |
|
||||||||
| Granted |
|
|
||||||||||||
| Exercised |
(
|
|
||||||||||||
| Lapsed or canceled |
(
|
|
||||||||||||
| Outstanding at December 31, 2020 |
|
$ |
|
|
|
|||||||||
| Expected to vest |
|
|
|
|
||||||||||
| Exercisable at December 31, 2020 |
|
$ |
|
|
$ |
|
||||||||
|
Vesting Contingent on
Service Conditions
|
Vesting Contingent on
Performance and Service
Conditions - Payable in Stock
|
Vesting Contingent on
Performance and Service
Conditions - Payable in Cash
|
||||||||||||||||||||||||
|
Number of
Nonvested
Shares
|
Weighted-
Average
Grant-Date
Fair Value
|
Number of
Nonvested
Shares
|
Weighted-
Average
Grant-Date
Fair Value
|
Number of
Nonvested Shares |
Weighted-
Average Grant-Date Fair Value |
|||||||||||||||||||||
| Outstanding at December 31, 2019 |
|
$ |
|
|
$ |
|
$ |
|
$ |
|
||||||||||||||||
| Granted |
|
|
(
|
|
|
|
||||||||||||||||||||
| Vested |
(
|
|
(
|
|
(
|
|
||||||||||||||||||||
| Forfeited |
(
|
|
|
|
(
|
|
||||||||||||||||||||
| Outstanding at December 31, 2020 |
|
$ |
|
|
$ |
|
$ |
|
$ |
|
||||||||||||||||
|
Number of
Nonvested
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
|||||||
| Outstanding at December 31, 2019 |
|
$ |
|
|||||
| Granted |
|
|
||||||
| Dividend equivalents |
|
|
||||||
| Vested |
(
|
|
||||||
| Forfeited |
(
|
|
||||||
| Outstanding at December 31, 2020 |
|
$ |
|
|||||
|
Year ended December 31,
in millions
|
2020 | 2019 | 2018 | ||||||||
| Interest cost on PBO | $ |
|
$ |
|
$ |
|
|||||
| Expected return on plan assets |
(
|
(
|
(
|
||||||||
| Amortization of losses |
|
|
|
||||||||
| Settlement loss |
|
|
|
||||||||
| Net pension cost | $ |
|
$ |
|
$ |
|
|||||
| Other changes in plan assets and benefit obligations recognized in OCI: | |||||||||||
| Net (gain) loss | $ |
(
|
$ |
(
|
$ |
|
|||||
| Amortization of gains |
(
|
(
|
(
|
||||||||
| Total recognized in comprehensive income | $ |
(
|
$ |
(
|
$ |
(
|
|||||
| Total recognized in net pension cost and comprehensive income | $ |
(
|
$ |
(
|
$ |
|
|||||
|
Year ended December 31,
in millions
|
2020 | 2019 | ||||||
| PBO at beginning of year | $ |
|
$ |
|
||||
| Interest cost |
|
|
||||||
| Actuarial losses (gains) |
|
|
||||||
| Benefit payments |
(
|
(
|
||||||
| PBO at end of year | $ |
|
$ |
|
||||
|
Year ended December 31,
in millions
|
2020 | 2019 | ||||||
| FVA at beginning of year | $ |
|
$ |
|
||||
| Actual return on plan assets |
|
|
||||||
| Employer contributions |
|
|
||||||
| Benefit payments |
(
|
(
|
||||||
| FVA at end of year | $ |
|
$ |
|
||||
|
December 31,
in millions
|
2020 | 2019 | ||||||
|
Funded status
(a)
|
$ |
(
|
$ |
(
|
||||
| Net prepaid pension cost recognized consists of: | ||||||||
| Noncurrent assets | $ |
|
|
|||||
| Current liabilities |
(
|
$ |
(
|
|||||
| Noncurrent liabilities |
(
|
(
|
||||||
|
Net prepaid pension cost recognized
(b)
|
$ |
(
|
$ |
(
|
||||
| December 31, | 2020 | 2019 | ||||||||||||
| in millions | Cash Balance Pension Plan | Other Defined Benefit Plans | Cash Balance Pension Plan | Other Defined Benefit Plans | ||||||||||
| PBO | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| ABO |
|
|
|
|
||||||||||
| Fair value of plan assets |
|
|
|
|
||||||||||
| December 31, | 2020 | 2019 | ||||||
| Discount rate |
|
|
% | |||||
| Compensation increase rate | N/A | N/A | ||||||
| Weighted-average interest crediting rate |
|
% |
|
% | ||||
|
Year ended December 31,
|
2020 | 2019 | 2018 | ||||||||
|
Discount rate
|
|
% |
|
% |
|
% | |||||
|
Compensation increase rate
|
N/A | N/A | N/A | ||||||||
|
Expected return on plan assets
|
|
|
|
||||||||
| Target Allocation | |||||
| Asset Class | 2020 | ||||
| Equity securities: | |||||
| U.S. |
|
% | |||
| International |
|
||||
| Fixed income securities |
|
||||
| Real assets |
|
||||
| Other assets |
|
||||
| Total |
|
% | |||
| December 31, 2020 | ||||||||||||||
| in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||
| ASSET CLASS | ||||||||||||||
| Equity securities: | ||||||||||||||
| Common — U.S. | $ |
|
|
|
$ |
|
||||||||
| Preferred — U.S. |
|
|
|
|
||||||||||
| Debt securities: | ||||||||||||||
| Corporate bonds — U.S. |
|
$ |
|
|
|
|||||||||
| Corporate bonds — International |
|
|
|
|
||||||||||
| Government and agency bonds — U.S. |
|
|
|
|
||||||||||
| Government bonds — International |
|
|
|
|
||||||||||
| State and municipal bonds |
|
|
|
|
||||||||||
| Mutual funds: | ||||||||||||||
| Equity — International |
|
|
|
|
||||||||||
|
Collective investment funds (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
|
Insurance investment contracts and pooled separate accounts (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
|
Other assets (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
| Total net assets at fair value | $ |
|
$ |
|
|
$ |
|
|||||||
| December 31, 2019 | ||||||||||||||
| in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||
| ASSET CLASS | ||||||||||||||
| Equity securities: | ||||||||||||||
| Common — U.S. |
|
|
|
|
||||||||||
| Common — International |
|
|
|
|
||||||||||
| Preferred — U.S. |
|
|
|
|
||||||||||
| Debt securities: | ||||||||||||||
| Corporate bonds — U.S. |
|
$ |
|
|
|
|||||||||
| Corporate bonds — International |
|
|
|
|
||||||||||
| Government and agency bonds — U.S. |
|
|
|
|
||||||||||
| Government bonds — International |
|
|
|
|
||||||||||
| State and municipal bonds |
|
|
|
|
||||||||||
| Mutual funds: | ||||||||||||||
| Equity — International |
|
|
|
|
||||||||||
|
Collective investment funds (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
|
Insurance investment contracts and pooled separate accounts (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
|
Other assets (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
| Total net assets at fair value | $ |
|
$ |
|
|
$ |
|
|||||||
| December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
| Net unrecognized losses (gains) | $ |
(
|
$ |
(
|
||||
| Net unrecognized prior service credit |
(
|
(
|
||||||
| Total unrecognized AOCI | $ |
(
|
$ |
(
|
||||
| December 31, | |||||||||||
| in millions | 2020 | 2019 | 2018 | ||||||||
| Service cost of benefits earned | $ |
|
$ |
|
$ |
|
|||||
| Interest cost on APBO |
|
|
|
||||||||
| Expected return on plan assets |
(
|
(
|
(
|
||||||||
| Amortization of prior service credit |
(
|
|
(
|
||||||||
| Amortization of gains |
|
(
|
(
|
||||||||
| Net postretirement benefit |
(
|
|
(
|
||||||||
| Other changes in plan assets and benefit obligations recognized in OCI: | |||||||||||
| Net (gain) loss | $ |
|
$ |
|
$ |
|
|||||
| Amortization of prior service credit |
|
|
|
||||||||
| Amortization of losses |
|
|
|
||||||||
| Total recognized in comprehensive income | $ |
|
$ |
|
$ |
|
|||||
| Total recognized in net postretirement benefit cost and comprehensive income | $ |
|
$ |
|
$ |
|
|||||
| Year ended December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
| APBO at beginning of year | $ |
|
$ |
|
||||
| Service cost |
|
|
||||||
| Interest cost |
|
|
||||||
| Plan participants’ contributions |
|
|
||||||
| Actuarial losses (gains) |
|
|
||||||
| Benefit payments |
(
|
(
|
||||||
| Plan amendments |
|
(
|
||||||
| APBO at end of year | $ |
|
$ |
|
||||
| Year ended December 31, | ||||||||
| in millions | 2020 | 2019 | ||||||
| FVA at beginning of year | $ |
|
$ |
|
||||
| Employer contributions |
|
|
||||||
| Plan participants’ contributions |
|
|
||||||
| Benefit payments |
(
|
(
|
||||||
| Actual return on plan assets |
|
|
||||||
| FVA at end of year | $ |
|
$ |
|
||||
| Year ended December 31, | 2020 | 2019 | 2018 | ||||||||
| Discount rate |
|
% |
|
% |
|
% | |||||
| Expected return on plan assets |
|
|
|
||||||||
| Target Allocation | |||||
| Asset Class | 2020 | ||||
| Equity securities |
|
% | |||
| Fixed income securities |
|
||||
| Cash equivalents |
|
||||
| Total |
|
% | |||
| December 31, 2020 | ||||||||||||||
| in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||
| ASSET CLASS | ||||||||||||||
| Mutual funds: | ||||||||||||||
| Equity — U.S. | $ |
|
|
|
$ |
|
||||||||
| Equity — International |
|
|
|
|
||||||||||
| Fixed income — U.S. |
|
|
|
|
||||||||||
| Collective investment funds: | ||||||||||||||
|
Equity — U.S.
(a)
|
|
|
|
|
||||||||||
|
Other assets (measured at NAV)
(a)
|
— | — | — |
|
||||||||||
| Total net assets at fair value | $ |
|
|
|
$ |
|
||||||||
| December 31, 2019 | ||||||||||||||
| in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||
| ASSET CLASS | ||||||||||||||
| Mutual funds: | ||||||||||||||
| Equity — U.S. | $ |
|
|
|
$ |
|
||||||||
| Equity — International |
|
|
|
|
||||||||||
| Fixed income — U.S. |
|
|
|
|
||||||||||
| Fixed income — International |
|
|
|
|
||||||||||
| Collective investment funds: | ||||||||||||||
|
Equity — U.S.
(a)
|
|
$ |
|
|
|
|||||||||
| Other assets (measured at NAV) | — | — | — |
|
||||||||||
| Total net assets at fair value | $ |
|
$ |
|
|
$ |
|
|||||||
| December 31, | |||||||||||
| dollars in millions | 2020 | 2019 | 2018 | ||||||||
| FEDERAL FUNDS PURCHASED | |||||||||||
| Balance at year end | $ |
|
|
$ |
|
||||||
| Average during the year |
|
$ |
|
|
|||||||
| Maximum month-end balance |
|
|
|
||||||||
|
Weighted-average rate during the year
(a)
|
|
% |
|
% |
|
% | |||||
|
Weighted-average rate at December 31
(a)
|
|
|
|
||||||||
| SECURITIES SOLD UNDER REPURCHASE AGREEMENTS | |||||||||||
| Balance at year end | $ |
|
$ |
|
$ |
|
|||||
| Average during the year |
|
|
|
||||||||
| Maximum month-end balance |
|
|
|
||||||||
|
Weighted-average rate during the year
(a)
|
|
% |
|
% |
|
% | |||||
|
Weighted-average rate at December 31
(a)
|
|
|
|
||||||||
| OTHER SHORT-TERM BORROWINGS | |||||||||||
| Balance at year end | $ |
|
$ |
|
$ |
|
|||||
| Average during the year |
|
|
|
||||||||
| Maximum month-end balance |
|
|
|
||||||||
|
Weighted-average rate during the year
(a)
|
|
% |
|
% |
|
% | |||||
|
Weighted-average rate at December 31
(a)
|
|
|
|
||||||||
| December 31, | ||||||||
| dollars in millions | 2020 | 2019 | ||||||
|
Senior medium-term notes due through 2021
(a)
|
$ |
|
$ |
|
||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
Other subordinated notes
(b)(d)
|
|
|
||||||
| Total parent company |
|
|
||||||
|
Senior medium-term notes due through 2039
(e)
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
Secured borrowing due through 2025
(h)
|
|
|
||||||
|
Federal Home Loan Bank advances due through 2038
(i)
|
|
|
||||||
|
Investment Fund Financing due through 2052
(j)
|
|
|
||||||
| Key Govt Finance, Inc. Other Long Term Debt-ASR |
|
|
||||||
|
Obligations under Capital Leases due through 2032
(k)
|
|
|
||||||
| Total subsidiaries |
|
|
||||||
| Total long-term debt | $ |
|
$ |
|
||||
| in millions | Parent | Subsidiaries | Total | ||||||||
| 2021 | $ |
|
$ |
|
$ |
|
|||||
| 2022 |
|
|
|
||||||||
| 2023 |
|
|
|
||||||||
| 2024 |
|
|
|
||||||||
| 2025 |
|
|
|
||||||||
| All subsequent years |
|
|
|
||||||||
| dollars in millions |
Trust Preferred
Securities,
Net of Discount
(a)
|
Common
Stock
|
Principal
Amount of
Debentures,
Net of Discount
(b)
|
Interest Rate
of Trust Preferred
Securities and
Debentures (c) |
Maturity
of Trust Preferred
Securities and
Debentures
|
||||||||||||
| December 31, 2020 | |||||||||||||||||
| KeyCorp Capital I | $ |
|
$ |
|
$ |
|
|
% | 2028 | ||||||||
| KeyCorp Capital II |
|
|
|
|
2029 | ||||||||||||
| KeyCorp Capital III |
|
|
|
|
2029 | ||||||||||||
| HNC Statutory Trust III |
|
|
|
|
2035 | ||||||||||||
| Willow Grove Statutory Trust I |
|
|
|
|
2036 | ||||||||||||
| HNC Statutory Trust IV |
|
|
|
|
2037 | ||||||||||||
| Westbank Capital Trust II |
|
|
|
|
2034 | ||||||||||||
| Westbank Capital Trust III |
|
|
|
|
2034 | ||||||||||||
| Total | $ |
|
$ |
|
$ |
|
|
% | — | ||||||||
| December 31, 2019 | $ |
|
$ |
|
$ |
|
|
% | — | ||||||||
|
December 31,
in millions
|
2020 | 2019 | ||||||
| Loan commitments: | ||||||||
| Commercial and other | $ |
|
$ |
|
||||
| Commercial real estate and construction |
|
|
||||||
| Home equity |
|
|
||||||
| Credit cards |
|
|
||||||
| Total loan commitments |
|
|
||||||
| Commercial letters of credit |
|
|
||||||
| Purchase card commitments |
|
|
||||||
| Principal investing commitments |
|
|
||||||
| Tax credit investment commitments |
|
|
||||||
| Total loan and other commitments | $ |
|
$ |
|
||||
| December 31, 2020 | Maximum Potential Undiscounted Future Payments | Liability Recorded | ||||||
|
in millions
|
||||||||
| Financial guarantees: | ||||||||
| Standby letters of credit | $ |
|
$ |
|
||||
| Recourse agreement with FNMA |
|
|
||||||
| Residential mortgage reserve |
|
|
||||||
|
Written put options
(a)
|
|
|
||||||
| Total | $ |
|
$ |
|
||||
| in millions |
Unrealized gains
(losses) on securities
available for sale
|
Unrealized gains
(losses) on derivative
financial instruments
|
Foreign currency
translation
adjustment
|
Net pension and
postretirement
benefit costs
|
Total | ||||||||||||
| Balance at December 31, 2018 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
|
Other comprehensive income before reclassification, net of income taxes
|
|
|
|
|
|
||||||||||||
|
Amounts reclassified from accumulated other comprehensive income, net of income taxes
(a)
|
(
|
(
|
|
|
(
|
||||||||||||
| Net current-period other comprehensive income, net of income taxes |
|
|
|
|
|
||||||||||||
| Balance at December 31, 2019 | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
|
Other comprehensive income before reclassification, net of income taxes
|
|
|
|
|
|
||||||||||||
|
Amounts reclassified from accumulated other comprehensive income, net of income taxes
(a)
|
(
|
(
|
|
|
(
|
||||||||||||
| Net current-period other comprehensive income, net of income taxes |
|
|
|
|
|
||||||||||||
| Balance at December 31, 2020 | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Twelve months ended December 31, |
Affected Line Item in the Statement
Where Net Income is Presented
|
||||||||||
| in millions | 2020 | 2019 | |||||||||
| Unrealized gains (losses) on available for sale securities | |||||||||||
| Realized gains | $ |
|
|
Other income | |||||||
|
|
|
Income (loss) from continuing operations before income taxes
|
|||||||||
|
|
|
Income taxes | |||||||||
| $ |
|
|
Income (loss) from continuing operations | ||||||||
| Unrealized gains (losses) on derivative financial instruments | |||||||||||
| Interest rate | $ |
|
$ |
|
Interest income — Loans | ||||||
| Interest rate |
(
|
(
|
Interest expense — Long-term debt | ||||||||
| Foreign exchange contracts |
|
|
Other income | ||||||||
|
|
|
Income (loss) from continuing operations before income taxes
|
|||||||||
|
|
|
Income taxes | |||||||||
| $ |
|
$ |
|
Income (loss) from continuing operations | |||||||
| Foreign currency translation adjustment |
|
(
|
Other income | ||||||||
|
|
(
|
Income (loss) from continuing operations before income taxes
|
|||||||||
|
|
(
|
Income taxes | |||||||||
|
|
(
|
Income (loss) from continuing operations | |||||||||
| Net pension and postretirement benefit costs | |||||||||||
| Amortization of losses | $ |
(
|
$ |
(
|
Other expense | ||||||
| Settlement loss |
(
|
(
|
Other expense | ||||||||
| Amortization of prior service credit |
|
|
Other expense | ||||||||
|
(
|
(
|
Income (loss) from continuing operations before income taxes
|
|||||||||
|
(
|
(
|
Income taxes | |||||||||
| $ |
(
|
$ |
(
|
Income (loss) from continuing operations | |||||||
| Preferred stock series | Amount outstanding (in millions) | Shares authorized and outstanding | Par value | Liquidation preference | Ownership interest per depositary share | Liquidation preference per depositary share | 2020 dividends paid per depositary share | ||||||||||||||||
| Fixed-to-Floating Rate Perpetual Noncumulative Series D | $ |
|
|
$ |
|
$ |
|
1/25th | $ |
|
$ |
|
|||||||||||
| Fixed-to-Floating Rate Perpetual Noncumulative Series E |
|
|
|
|
1/40th |
|
|
||||||||||||||||
| Fixed Rate Perpetual Noncumulative Series F |
|
|
|
|
1/40th |
|
|
||||||||||||||||
| Fixed Rate Perpetual Noncumulative Series G |
|
|
|
|
1/40th |
|
|
||||||||||||||||
| Actual |
To Meet Minimum
Capital Adequacy Requirements |
To Qualify as Well
Capitalized Under Federal Deposit Insurance Act |
||||||||||||||||||||||||
| dollars in millions | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS | ||||||||||||||||||||||||||
| Key | $ |
|
|
% | $ |
|
|
% | N/A | N/A | ||||||||||||||||
| KeyBank (consolidated) |
|
|
|
|
$ |
|
|
% | ||||||||||||||||||
| TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS | ||||||||||||||||||||||||||
| Key | $ |
|
|
% | $ |
|
|
% | N/A | N/A | ||||||||||||||||
| KeyBank (consolidated) |
|
|
|
|
$ |
|
|
% | ||||||||||||||||||
| TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS | ||||||||||||||||||||||||||
| Key | $ |
|
|
% | $ |
|
|
% | N/A | N/A | ||||||||||||||||
| KeyBank (consolidated) |
|
|
|
|
$ |
|
|
% | ||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS | ||||||||||||||||||||||||||
| Key | $ |
|
|
% | $ |
|
|
% | N/A | N/A | ||||||||||||||||
| KeyBank (consolidated) |
|
|
|
|
$ |
|
|
% | ||||||||||||||||||
| TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS | ||||||||||||||||||||||||||
| Key | $ |
|
|
% | $ |
|
|
% | N/A | N/A | ||||||||||||||||
| KeyBank (consolidated) |
|
|
|
|
$ |
|
|
% | ||||||||||||||||||
| TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS | ||||||||||||||||||||||||||
| Key | $ |
|
|
% | $ |
|
|
% | N/A | N/A | ||||||||||||||||
| KeyBank (consolidated) |
|
|
|
|
$ |
|
|
% | ||||||||||||||||||
|
Year ended December 31,
|
Consumer Bank | Commercial Bank | |||||||||||||||||||||
|
dollars in millions
|
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||
|
SUMMARY OF OPERATIONS
|
|||||||||||||||||||||||
|
Net interest income (TE)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Noninterest income
|
|
|
|
|
|
|
|||||||||||||||||
|
Total revenue (TE)
(a)
|
|
|
|
|
|
|
|||||||||||||||||
|
Provision for credit losses
|
|
|
|
|
|
|
|||||||||||||||||
|
Depreciation and amortization expense
|
|
|
|
|
|
|
|||||||||||||||||
|
Other noninterest expense
|
|
|
|
|
|
|
|||||||||||||||||
|
Income (loss) from continuing operations before income taxes (TE)
|
|
|
|
|
|
|
|||||||||||||||||
|
Allocated income taxes (benefit) and TE adjustments
|
|
|
|
|
|
|
|||||||||||||||||
|
Income (loss) from continuing operations
|
|
|
|
|
|
|
|||||||||||||||||
|
Income (loss) from discontinued operations, net of taxes
|
|
|
|
|
|
|
|||||||||||||||||
|
Net income (loss)
|
|
|
|
|
|
|
|||||||||||||||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|||||||||||||||||
|
Net income (loss) attributable to Key
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
AVERAGE BALANCES
(b)
|
|||||||||||||||||||||||
|
Loans and leases
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Total assets
(a)
|
|
|
|
|
|
|
|||||||||||||||||
|
Deposits
|
|
|
|
|
|
|
|||||||||||||||||
|
OTHER FINANCIAL DATA
|
|||||||||||||||||||||||
|
Expenditures for additions to long-lived assets
(a), (b)
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||
|
Net loan charge-offs
(b)
|
|
|
|
|
|
|
|||||||||||||||||
|
Return on average allocated equity
(b)
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||
|
Return on average allocated equity
|
|
|
|
|
|
|
|||||||||||||||||
|
Average full-time equivalent employees
(c)
|
|
|
|
|
|
|
|||||||||||||||||
| Year ended December 31, | Other | Key | ||||||||||||||||||||||||
| dollars in millions | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||
| SUMMARY OF OPERATIONS | ||||||||||||||||||||||||||
| Net interest income (TE) | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Noninterest income |
|
|
|
|
|
|
||||||||||||||||||||
|
Total revenue (TE)
(a)
|
|
|
|
|
|
|
||||||||||||||||||||
| Provision for credit losses |
(
|
|
(
|
|
|
|
||||||||||||||||||||
| Depreciation and amortization expense |
|
|
|
|
|
|
||||||||||||||||||||
| Other noninterest expense |
(
|
|
|
|
|
|
||||||||||||||||||||
| Income (loss) from continuing operations before income taxes (TE) |
(
|
(
|
|
|
|
|
||||||||||||||||||||
| Allocated income taxes (benefit) and TE adjustments |
(
|
(
|
(
|
|
|
|
||||||||||||||||||||
| Income (loss) from continuing operations |
|
(
|
|
|
|
|
||||||||||||||||||||
| Income (loss) from discontinued operations, net of taxes |
|
|
|
|
|
|
||||||||||||||||||||
| Net income (loss) |
|
(
|
|
|
|
|
||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests |
|
|
|
|
|
|
||||||||||||||||||||
| Net income (loss) attributable to Key | $ |
|
$ |
(
|
(d)
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
|
AVERAGE BALANCES
(b)
|
||||||||||||||||||||||||||
| Loans and leases | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Total assets
(a)
|
|
|
|
|
|
|
||||||||||||||||||||
| Deposits |
|
|
|
|
|
|
||||||||||||||||||||
| OTHER FINANCIAL DATA | ||||||||||||||||||||||||||
|
Expenditures for additions to long-lived assets
(a), (b)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Net loan charge-offs
(b)
|
|
|
|
|
|
|
||||||||||||||||||||
|
Return on average allocated equity
(b)
|
|
% |
(
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||
| Return on average allocated equity |
|
(
|
|
|
|
|
||||||||||||||||||||
|
Average full-time equivalent employees
(c)
|
|
|
|
|
|
|
||||||||||||||||||||
|
December 31,
in millions
|
2020 | 2019 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ |
|
$ |
|
||||
| Short-term investments |
|
|
||||||
| Securities available for sale |
|
|
||||||
| Other investments |
|
|
||||||
| Loans to: | ||||||||
| Banks |
|
|
||||||
| Nonbank subsidiaries |
|
|
||||||
| Total loans |
|
|
||||||
| Investment in subsidiaries: | ||||||||
| Banks |
|
|
||||||
| Nonbank subsidiaries |
|
|
||||||
| Total investment in subsidiaries |
|
|
||||||
| Goodwill |
|
|
||||||
| Corporate-owned life insurance |
|
|
||||||
| Derivative assets |
|
|
||||||
| Accrued income and other assets |
|
|
||||||
| Total assets | $ |
|
$ |
|
||||
| LIABILITIES | ||||||||
| Accrued expense and other liabilities | $ |
|
$ |
|
||||
| Long-term debt due to: | ||||||||
| Subsidiaries |
|
|
||||||
| Unaffiliated companies |
|
|
||||||
| Total long-term debt |
|
|
||||||
| Total liabilities |
|
|
||||||
|
SHAREHOLDERS’ EQUITY
(a)
|
|
|
||||||
| Total liabilities and shareholders’ equity | $ |
|
$ |
|
||||
| Year ended December 31, | |||||||||||
| in millions | 2020 | 2019 | 2018 | ||||||||
| INCOME | |||||||||||
| Dividends from subsidiaries: | |||||||||||
| Bank subsidiaries | $ |
|
$ |
|
$ |
|
|||||
| Nonbank subsidiaries |
|
|
|
||||||||
| Interest income from subsidiaries |
|
|
|
||||||||
| Other income |
|
|
|
||||||||
| Total income |
|
|
|
||||||||
| EXPENSE | |||||||||||
| Interest on long-term debt with subsidiary trusts |
|
|
|
||||||||
| Interest on other borrowed funds |
|
|
|
||||||||
| Personnel and other expense |
|
|
|
||||||||
| Total expense |
|
|
|
||||||||
| Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries |
|
|
|
||||||||
| Income tax (expense) benefit |
|
|
|
||||||||
| Income (loss) before equity in net income (loss) less dividends from subsidiaries |
|
|
|
||||||||
| Equity in net income (loss) less dividends from subsidiaries |
|
|
|
||||||||
| NET INCOME (LOSS) |
|
|
|
||||||||
| Less: Net income attributable to noncontrolling interests |
|
|
|
||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO KEY | $ |
|
$ |
|
$ |
|
|||||
|
Year ended December 31,
|
|||||||||||
| in millions | 2020 | 2019 | 2018 | ||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net income (loss) attributable to Key | $ |
|
$ |
|
$ |
|
|||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Deferred income taxes (benefit) |
|
(
|
|
||||||||
| Stock-based compensation expense |
|
|
|
||||||||
| Equity in net (income) loss less dividends from subsidiaries |
(
|
(
|
(
|
||||||||
| Net (increase) decrease in other assets |
(
|
|
(
|
||||||||
| Net increase (decrease) in other liabilities |
|
|
|
||||||||
| Other operating activities, net |
|
|
|
||||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
|
|
||||||||
| INVESTING ACTIVITIES | |||||||||||
| Net (increase) decrease in securities available for sale and in short-term and other investments |
(
|
(
|
|
||||||||
| Cash infusion from purchase of Cain Brothers |
|
|
|
||||||||
| Proceeds from sales, prepayments and maturities of securities available for sale |
|
|
|
||||||||
| Net (increase) decrease in loans to subsidiaries |
|
|
|
||||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
(
|
|
|
||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net proceeds from issuance of long-term debt |
|
|
|
||||||||
| Payments on long-term debt |
(
|
(
|
(
|
||||||||
| Repurchase of Treasury Shares |
(
|
(
|
(
|
||||||||
| Net cash from the issuance (redemption) of Common Shares and preferred stock |
|
|
|
||||||||
| Cash dividends paid |
(
|
(
|
(
|
||||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(
|
(
|
(
|
||||||||
| NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS |
(
|
|
|
||||||||
| CASH AND DUE FROM BANKS AT BEGINNING OF YEAR |
|
|
|
||||||||
| CASH AND DUE FROM BANKS AT END OF YEAR | $ |
|
$ |
|
$ |
|
|||||
| Year ended December 31, | 2020 | 2019 | |||||||||||||||||||||
| dollars in millions | Consumer Bank | Commercial Bank | Total Contract Revenue | Consumer Bank | Commercial Bank | Total Contract Revenue | |||||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||||
| Trust and investment services income | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Investment banking and debt placement fees |
|
|
|
|
|
|
|||||||||||||||||
| Services charges on deposit accounts |
|
|
|
|
|
|
|||||||||||||||||
| Cards and payments income |
|
|
|
|
|
|
|||||||||||||||||
| Other noninterest income |
|
|
|
|
|
|
|||||||||||||||||
| Total revenue from contracts with customers | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Other noninterest income
(a)
|
|
|
|||||||||||||||||||||
|
Noninterest income from other segments
(b)
|
|
|
|||||||||||||||||||||
| Total noninterest income | $ |
|
$ |
|
|||||||||||||||||||
| Page Number | |||||
| 3.1 | ||||||||
| 3.2 | ||||||||
| 4.1 | ||||||||
| 4.2 | ||||||||
| 4.3 | ||||||||
| 4.4 | ||||||||
| 4.5 | ||||||||
| 4.6 | ||||||||
| 4.7 | ||||||||
| 4.8 | ||||||||
| 4.9 | ||||||||
| 4.10 | ||||||||
| 4.11 | ||||||||
| 4.12 | ||||||||
| 4.13 | ||||||||
| 10.1 | ||||||||
| 10.2 | ||||||||
| 10.3 | ||||||||
| 10.4 | ||||||||
| 10.5 | ||||||||
| 10.6 | ||||||||
| 10.7 | ||||||||
| 10.8 | ||||||||
| 10.9 | ||||||||
| 10.10 | ||||||||
| 10.11 | ||||||||
| 10.12 | ||||||||
| 10.13 | ||||||||
| 10.14 | ||||||||
| 10.15 | ||||||||
| 10.16 | ||||||||
| 10.17 | ||||||||
| 10.18 | ||||||||
| 10.19 | ||||||||
| 10.20 | ||||||||
| 10.21 | ||||||||
| 10.22 | ||||||||
| 10.23 | ||||||||
| 10.24 | ||||||||
| 10.25 | ||||||||
| 10.26 | ||||||||
| 10.27 | ||||||||
| 10.28 | ||||||||
| 10.29 | ||||||||
| 10.30 | ||||||||
| 10.31 | ||||||||
| 10.32 | ||||||||
| 10.33 | ||||||||
| 10.34 | ||||||||
| 10.35 | ||||||||
| 10.36 | ||||||||
| 10.37 | ||||||||
| 10.38 | ||||||||
| 10.39 | ||||||||
| 10.40 | ||||||||
| 10.41 | ||||||||
| 10.42 | ||||||||
| 10.43 | ||||||||
| 10.44 | ||||||||
| 10.45 | ||||||||
| 21 | ||||||||
| 23 | ||||||||
| 24 | ||||||||
| 31.1 | ||||||||
| 31.2 | ||||||||
| 32.1 | ||||||||
| 32.2 | ||||||||
| 101 | The following materials from KeyCorp’s Form 10-K Report for the year ended December 31, 2019, formatted in inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income; (iii) the Consolidated Statements of Changes in Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements. | |||||||
| 104 | The cover page from KeyCorp’s Form 10-K for the year ended December 31, 2020, formatted in inline XBRL (contained in Exhibit 101). | |||||||
| KEYCORP | ||
| /s/ Donald R. Kimble | ||
| Donald R. Kimble | ||
| Chief Financial Officer (Principal Financial Officer) | ||
| February 22, 2021 | ||
| /s/ Douglas M. Schosser | ||
| Douglas M. Schosser | ||
| Chief Accounting Officer (Principal Accounting Officer) | ||
| February 22, 2021 | ||
| Signature | Title | |||||||
| *Christopher M. Gorman |
Chairman, Chief Executive Officer and President
(Principal Executive Officer), and Director |
|||||||
| *Donald R. Kimble | Chief Financial Officer (Principal Financial Officer) | |||||||
| *Douglas M. Schosser | Chief Accounting Officer (Principal Accounting Officer) | |||||||
| *Bruce D. Broussard | Director | |||||||
|
*Gary M. Crosby
|
Director | |||||||
| *Alexander M. Cutler | Director | |||||||
| *H. James Dallas | Director | |||||||
| *Elizabeth R. Gile | Director | |||||||
| *Ruth Ann M. Gillis | Director | |||||||
| *Robin N. Hayes | Director | |||||||
| *Carlton L. Highsmith | Director | |||||||
| *Richard J. Hipple | Director | |||||||
| *Kristen L. Manos | Director | |||||||
| *Devina A. Rankin | Director | |||||||
| *Barbara R. Snyder | Director | |||||||
| *Todd J. Vasos | Director | |||||||
| *David K. Wilson | Director | |||||||
| /s/ Carrie Benedict | ||
| * By Carrie Benedict, attorney-in-fact | ||
| February 22, 2021 | ||